NO Vote & FX Exchange Rates - Pound to Dollar and Euro Forecasts Positive Following Scottish Refendum

September 19, 2014 - Written by John Cameron

STORY LINK NO Vote & FX Exchange Rates - Pound to Dollar and Euro Forecasts Positive Following Scottish Refendum

Currency News UK - How the 'No' Vote had been forecast to affect the pound to euro and us dollar and their exchange rate forecasts moving forwards:

Currency market babble Thursday’s session was dominated by investors’ views on the likely outcome of the Scottish Independence Referendum.

The latest Pound conversion rates after Sterling's rally ran out of steam today can be seen below (updated 20/09/2014 10:00 GMT):

The Pound to Australian Dollar exchange rate is 1.82465 GBP/AUD.
The Pound to Canadian Dollar conversion rate is 1.78570 GBP/CAD.
The Pound to Euro exchange rate is 1.26960 GBP/EUR.
The Pound to New Zealand Dollar exchange rate is 2.00435 GBP/NZD.
The Pound to US Dollar exchange rate is 1.62880 GBP/USD.

However, there were also several key risk events and data releases which are likely to affect the relative value of several major global tenders.

Meanwhile, the outcome of yesterday's Scottish referendum, announced earlier this morning, came out as a resounding 55% / 45% victory for the 'No' to independence campaign, as per analysts' expectation. The Pound Sterling (currency:GBP) has gained a little ground against the other major global tenders as a result.

British Pound forecast hindered by BoE minutes

The morning session brought the publication of the minutes of September’s Bank of England meeting and they were not entirely helpful to the future prospects of the Pound Sterling (currency:GBP).

For the second month on the trot, the memos of the most recent UK central bank get-together revealed that the nine-man committee was split 7-2 in favour of keeping British interest rates on hold at their current record low of 0.50%.

Once again policymakers Weale and McCafferty opted to vote in favour of a rate hike.

However, the other seven members appeared more resolute in their opposition to a tightening of policy, airing fears that continuing economic woes in the eurozone and an apparent softening of the level of UK exports and manufacturing output.

The majority view of the MPC was that there had been increasing signs of a cooling in the British housing market during the past month.

The tone of the Bank’s rhetoric suggests that a UK interest rate increase may be some way off – a fact which is likely to anchor the Pound Sterling moving forward. Meanwhile, the latest UK Retail Sales data, released at the same time as the Bank of England minutes, had the opposite effect, showing an August month-on-month increase of 0.4% versus an expected 0.3%.

The better than forecast showing for last month’s British shop sales number was attributed in part to new European Union energy saving regulations which ban the sale of high powered vacuum cleaners.

A surge in demand for these high wattage hoovers caused a spike in high street transactions as shoppers clamoured to buy them before the ban – an action likely to trigger increased support for the Pound.

Elsewhere, better than anticipated US weekly jobs numbers couldn’t stop the US Dollar (currency:USD) shipping support against Sterling on the day as investors priced-in a decidedly dovish Federal Reserve policy announcement last night.

International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way, ensuring you get the best exchange rates on your currency requirements.

TAGS: American Dollar Forecasts Daily Currency Updates Dollar Po Forecasts