With several Scottish independence polls indicating different results it has become hard to gauge exactly where the voting stands. The confusion is evident in the Pound Sterling to Japanese Yen (GBP/JPY) exchange rate which has been highly changeable throughout the course of the day.
The Pound Sterling to Japanese Yen exchange rate is currently trending in the region of 174.1500.
Friday of last week saw British Construction Output cool significantly, with July’s score showing a flat line figure. Year-on-year construction output came in at 2.6% in spite of the market consensus of 3.3% growth. Despite this soft data the Pound ticked higher against many of its major peers after a fresh poll on Scottish Independence indicated the unionists have taken the lead.
The Japanese Yen has been struggling since Friday to cope with the bullish US Dollar’s world-beating rally. As speculation surrounding a Federal Reserve benchmark rate hike increases; demand for the ‘Buck’ (USD) has hurt the Yen. David Bloom, the global head of currency strategy at HSBC Holdings Plc in London, said; ‘This is the big dollar crushing all in its path […]The big dominoes have dropped — the Pound, Euro, Yen — and that’s now taking the smaller dominoes with it’.
The Pound Sterling to Japanese Yen exchange rate has hit a low today of 173.7600.
Monday’s British data has printed relatively positively. Rightmove House Prices showed a 0.9% increase in September which resulted in a yearly growth of 7.9% compared to the previous figure of 5.3%. The positive data, however, hasn’t been able to influence Sterling movement to any great extent as confusion over the recent Scottish independence polls has caused Sterling volatility.
The latest Survation poll on Scottish independence has the ‘no’ vote in the lead at 54%. The Opinium poll for The Observer, however, only has the unionist lead at 53%. The Panelbase survey for The Sunday Times has the unionist lead at just 51%, whereas the ICM survey for the Sunday Telegraph has the nationalists in the lead by 54%.
The varied polls have spelled confusion for investors and the Pound has fluctuated against many of its rivals as a result. The varied result of the polls notwithstanding, the indication is that the result will be far too close to call.
With nothing in the way of Japanese economic data to focus on Monday, Pound to Japanese Yen exchange rate movement has been dictated by Sterling changes. It is also possible that Yen fluctuations are the result of traders holding back on US Dollar investment ahead of Wednesday’s key Federal Reserve policy decisions.
