{"id":60012,"date":"2014-09-08T08:35:32","date_gmt":"2014-09-08T12:35:32","guid":{"rendered":"http:\/\/countingpips.com\/?p=60012"},"modified":"2014-09-08T09:32:00","modified_gmt":"2014-09-08T13:32:00","slug":"in-light-of-the-scotland-independence-referendum-in-the-uk","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2014\/09\/in-light-of-the-scotland-independence-referendum-in-the-uk\/","title":{"rendered":"In Light of the Scotland Independence Referendum in the UK"},"content":{"rendered":"
September 8, 2014<\/div>
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By HY Markets Forex Blog<\/a><\/u><\/strong> <\/p>\n

The latest poll in the YES\/NO campaign for Scottish Independence showed, for the first time, that the YES campaign in favour of Scottish Independence is marginally ahead.\u00a0 The data has dragged the UK benchmark index FTSE 100 and the British pound lower.<\/strong><\/p>\n

The move has raised worries and speculation on how it would affect the pound sterling if the Scottish nation should succeed in their bid for a separation from the UK?<\/span><\/p>\n

According to the Bank of America Merrill Lynch, sterling could lose value in the event of a Yes vote and could weaken the British Pound (GBP) against the USD in 2014 and 2015.<\/p>\n

On the other hand, analyst Athanasios Vamvakidis says he projects downside risks for the pound sterling if the Scottish referendum succeeds.<\/p>\n

“The Scotland referendum is a downside short-term risk to our GBP projections in 2014, particularly if long GBP positions increase further in the meantime and the referendum polls become more inconclusive, triggering market concerns,” Vamvakidis said.<\/p>

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However, if the Scotland votes No then pound sterling valuations will remain unchanged, but if there is an event of a Yes vote there are a number of currency-specific scenario to expect according to the Bank of America.<\/p>\n