Markets say Yes to sterling strength

Today's Highlights

Scots say No to independence

FX Market Overview

So the answer was 'Yes'. What a massive change. I was so shocked. Who knew the Royal and Ancient Golf club could be so...so....so...what is that word.... 'modern' as to allow women into the membership. It is only the 21st century after all. Gosh they are progressive.

Oh and in the other important vote, the Scots voted to stay in the United Kingdom by a surprisingly large margin. Well done to them for being so engaged (85% turnout) and for making the right decision. Now comes the horse trading that occurs after hasty promises are made and battles are won.

The effect of the latter vote has been to strengthen Sterling right across the board. It had started to happen as the polls closed in on a No vote yesterday but the push overnight has triggered a whole heap of orders and has refocused traders on other matters.

Those matters include the weakness of the Eurozone economies. The Euro has remained relatively strong during the last few weeks as traders concentrated on all things Scottish but with that excitement abating, we have to rethink the strength of the euro. Sterling pushed up to €1.2750 overnight and the US Dollar managed to push the euro down to $1.28. On the Sterling side, the break above €1.27 could have huge consequences. It is the first time the Pound has been above the long term trendline and if the Pound closes above that line this week, there is scope for a push to 1.3000 and maybe even 1.3250.

The Sterling - US Dollar rate has broken above the short term trend and that opens the door to a rally to 1.6650; the previous support line.

The lack of data today will give most traders time to reassess the future and others time to lick their wounds if they bet on a Yes vote. I think very few did but this is a market of contrarians so some must have.

We are moving offices over the weekend. Hopefully you received an email from me overnight confirming the new address details. Thankfully we have been able to retain our phone numbers so nothing changes there although there may be a slight drop in call quality at some stage this afternoon as we transition the service provider. By the way, I have never seen so much bubble wrap and the temptation to dive in for a popping frenzy is quite overwhelming. I shall resist. No really.... I will.

Have a great weekend everyone and I will send Monday's message from our new home.

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