GBP/USD Falls in Favour of the Dollar
Last week saw the Dollar remain strong as it became more likely that the Federal Reserve will bring forward its timeline for increasing interest rates. However, there was a drop in the value of the Pound as polls but the Scottish ‘Yes’ vote in the lead for the first time. The pair dropped from 1.6325 to 1.6085 before recovering towards the end of the week and closing at 1.6268.
The latest polls have put the ‘No’ vote in the lead and the polls released over the next few days are sure to have a major impact on the value of the Pound. Some analysts believe that if the ‘Yes’ campaign wins this week then the Pound could lose up to 10% of its value.
The Dollar is expected to remain strong as the University of Michigan Confidence index exceeded expectations and rose to 84.6. There is also a meeting of the Federal Open Market Committee on Wednesday which could lend further strength to the currency.