Sterling rose over a cent during trading today as weaker than forecast U.S economic figures helped boost the pounds value ahead of tomorrows make or break referendum. The GBP/USD cross climbed from $1.6251 to a high of $1.6354 after U.S consumer prices fell in August, the first decline since April 2013.
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Fed announcement.
This evening will see the U.S. Federal Reserve release a statement following their latest meeting. It is likely policymakers will provide some insight into further tapering of their on-going stimulus programme, as well as a potential interest rate rise.
If the Fed decide to drop some positive hints then we could easily see the dollar claw back the ground it has lost to the pound over the course of the day.
Big day for Britain.
The next couple of days could be extremely volatile for the UK and pound as it finally comes to the crunch for Scottish voters. Over the past few weeks the news has been dominated by the Scottish referendum and whether we see a "Yes" or "No" vote tomorrow the value of the pound is likely to be affected.
If the Scots decide to go it alone we could easily see the pound nosedive against most of its major counterparts, with some forecasts suggesting we could see as much as 8% wiped off of Sterling's value. If that were to happen it would leave GBP/USD sitting just over $1.50, wiping out all the gains the pound has made over the past 14 months.
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