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8 Sep 2014
Session Recap: GBP extends selloff on Scottish poll
FXStreet (Córdoba) - A quiet uneventful session in the FX market, with majors consolidating in tight ranges, with the exception of the pound, which has continued to suffer on the back of Scottish independence fears.
For the first time, an opinion poll is giving the lead to the ‘yes’ vote in Scotland independence campaign. Two weeks ahead of the referendum, a YouGov survey put the ‘yes’ to independence at 51% against the ‘no’ at 49%, stirring markets and making investors pull back BoE rate hike expectations.
GBP/USD left a huge bearish opening gap and continued to fall, having scored a 9-month low of 1.6102 so far. However, the pair has managed to hold above the 1.6100 psychological level so far. As for the EUR/GBP, the pair climbed to a 3-month high of 0.8036 on broad GBP weakness. The UK FTSE stock index dropped 0.87% to 6,795.
EUR/USD remains steady hovering around 1.2950 after last week’s ECB surprise sent the pair to its lowest level in 14 months at 1.2919. With all subsequent bounces being capped ahead of 1.3000, the pair has entered a phase of consolidation that has extended over the last sessions.
USD/JPY came under pressure following news the US added the fewest jobs in 8 months and fell from a 6-year high of 105.70 to a low of 104.66 Friday before settling above the 105 mark.
In terms of economic data, there are no first-tier releases today, while tomorrow a string of UK data might fight or reinforce the negative sentiment toward the Sterling.
Main Headlines in Europe:
Germany: Trade surplus widens more than expected in July
What’s the sentiment around the EUR/USD today? – Commerzbank and Danske Bank
Gold little changed after Friday's recovery
EMU: Sentix Investor Confidence falls to -9.8 in September
European stocks open mostly lower
Troika awaiting Cypriot foreclosure law details
For the first time, an opinion poll is giving the lead to the ‘yes’ vote in Scotland independence campaign. Two weeks ahead of the referendum, a YouGov survey put the ‘yes’ to independence at 51% against the ‘no’ at 49%, stirring markets and making investors pull back BoE rate hike expectations.
GBP/USD left a huge bearish opening gap and continued to fall, having scored a 9-month low of 1.6102 so far. However, the pair has managed to hold above the 1.6100 psychological level so far. As for the EUR/GBP, the pair climbed to a 3-month high of 0.8036 on broad GBP weakness. The UK FTSE stock index dropped 0.87% to 6,795.
EUR/USD remains steady hovering around 1.2950 after last week’s ECB surprise sent the pair to its lowest level in 14 months at 1.2919. With all subsequent bounces being capped ahead of 1.3000, the pair has entered a phase of consolidation that has extended over the last sessions.
USD/JPY came under pressure following news the US added the fewest jobs in 8 months and fell from a 6-year high of 105.70 to a low of 104.66 Friday before settling above the 105 mark.
In terms of economic data, there are no first-tier releases today, while tomorrow a string of UK data might fight or reinforce the negative sentiment toward the Sterling.
Main Headlines in Europe:
Germany: Trade surplus widens more than expected in July
What’s the sentiment around the EUR/USD today? – Commerzbank and Danske Bank
Gold little changed after Friday's recovery
EMU: Sentix Investor Confidence falls to -9.8 in September
European stocks open mostly lower
Troika awaiting Cypriot foreclosure law details