The Pound continues to recover

The Pound continues to recover from the heavy losses incurred at the start of the trading week.

Less than a week ahead of the Scottish independence referendum, the financial implications of a ‘yes’ vote for Scottish independence has finally come under intense scrutiny as the Royal bank of Scotland, Lloyds and the TSB all said they will relocate their headquarters to London in the event of a ‘yes’ vote. Scottish homeowners were also warned that it would be harder get a mortgage in the event of a yes vote.

The catalyst for yesterday’s improved performance by the Pound in the foreign exchange market was a new poll which placed the ‘no’ campaign for Scotland independence six points ahead of the ‘yes’ camp.

With the race still very tight, the Pound is likely to oscillate in line with the latest opinion poll ahead of the vote on the 18th September. Of interest, a record 4 million Scots have registered to vote, a far higher amount than is normally the case.

Meanwhile, the Royal Institution of Chartered Surveyors (RICS) reported yesterday that demand for housing in the UK fell for the second month in a row in August with the number of new buyer enquiries falling for the second consecutive month and the number of agreed house sales also dropped for the first time since September 2012 but the RICS report also added that the overall picture showed a return to a less volatile market with more stable price expectations over the next three months.