020 7898 0500Sterling fell against both the euro and US dollar yesterday, in spite of worse-than-expected data releases from both regions. With markets nervous ahead of Thursday’s referendum on Scottish independence, sterling found itself drifting lower amid fears over the heightened political uncertainty a ‘Yes’ vote could bring. With some analysts stating that sterling could lose more than 10% of its value, investors are, given the uncertainty, cautious in supporting the pound.
Today we could see increased movement in the markets, with inflation data released this morning. Following a disappointing fall to 1.6% last month, another drastic decline could see sterling struggle to fend off further advances from across the board.
