Talking Points- British Pound Trades Broadly Higher as Scotland Opts Against UK Secession
- Japanese Yen Under Pressure as Firming Risk Appetite Sinks Haven Demand
The British Pond outperformed in overnight trade, rising as much as 0.9 percent on average against its leading counterparts, as results from the Scottish Independence Referendum pointed to a victory for the “No” campaign against secession from the UK. The tally from 31 of 32 reporting councils shows 55.4% of voters opting for the status quo and 44.6 percent in favor of independence.
The Japanese Yen proved weakest on the session, sliding as much as 0.7 percent against the majors. The move lower mirrored an advance in the benchmark Nikkei 225 stock index, pointing to ebbing haven demand for the safety-linked currency as the catalyst behind the selloff. The newswires attributed stocks’ upbeat performance to fading uncertainty in Scotland as well as a supportive set of US Jobless Claims figures released earlier in the day.
Looking ahead, a quiet economic calendar in European and US trading hour is likely to see risk sentiment trends at the forefront. S&P 500 index futures are pointing higher, hinting the Yen is likely to remain under pressure while Sterling continues to revel in fading Scotland-linked uncertainty.
