In light of the recent Scottish opinion poll, the sterling has dropped against the dollar to its lowest point in the last 10 months. The opinion poll showed that 51% of voters are for Scotland breaking away from its union with the rest of the United Kingdom.
With Scottish independence, the sterling could lose up to 10% of its value. This would make the value of the sterling the same as it was in 2011, when England was in its last recession.
With the vote scheduled for September 18th, a vote for independence would almost certainly mean that Scotland would also leave the sterling pound behind too.
“The speed with which the polls have flipped has clearly been a shock to a lot of people,” said Adam Myers, European head of FX strategy at Credit Agricole in London.
If Scotland was to vote in favour of the yes movement however, it is not universally seen as a clear negative for the pound.
Over the past 12-18 months, the UK economy has grown to where the pound has been as much as 15% higher than the dollar.
Whereas the vote would slow this growth down, it is not expected by everyone vastly upset that picture.
Global currency and global currency trends is a topic that will be discussed at the inaugural TradeTech FX USA 2015, taking place from 27th – 28th January.
The full event agenda can be downloaded here: http://wbresear.ch/ttfxusagenda