U.K. split fears sink pound
The pound sank to its lowest level in 10 months Monday after an opinion poll over the weekend showed supporters of Scottish independence gaining a slim lead for the first time.
Strong growth and rapid job creation had sent the British currency to a 6-year high of $1.71 as markets anticipated the first rise in interest rates since 2007.
But politics has now come to the fore, and the pound has fallen nearly 6% from its peak.
Most polls still suggest Scotland will vote to stay, but the risk of a messy divorce is clearly rising.
Uncertainty is what investors hate the most, and now they have it in spades: which way will the vote go, and will Scotland be able to keep the pound if it does break away.
For years, the Scottish nationalists’ plan was to take Scotland into the European Union as an independent state, and then adopt the euro. They still want EU membership but the eurozone crisis killed talk of joining the single currency.
This Article Wrote For www.TopForexBrokers.com By Fxstay