The British pound sterling made huge gains against both the US dollar and the euro today as currency traders appeared to place bets that the risk of Scotland going independent — and plunging the UK into a period of economic instability — was going away.
This chart of the pound’s recovery against the euro in the last 12 hours says it all:
Same thing happened with the pound v the US dollar, as we told you earlier.
Here is the nut from The Telegraph:
Sterling reached 78.53p against the euro, the highest level since August 20, 2012. The currency also struck a two-week high against the dollar, at $US1.6409, in afternoon trading in London.
“The pound’s reaction clearly suggests investors are convinced that the Scots will vote to stay in the union,” said Fawad Razaqzada, technical analyst at traders Forex.com.
Currency traders are betting that Scottish nationalists’ bid for independence will fail today.