The main event influencing the British pound exchange rate is Scotland’s independence referendum. The latest polls showed predominance of opponents to secede from the UK. So this news calmed down investors and made the pound rebound.
On Friday, the GBP/USD was moving sideways near the level of 1.6235. Over the past month, the British currency lost over 0.9%. In addition to other factors, a strengthening US dollar contributed to the decline. Yet, year to date the sterling showed maximum growth among the major currencies on Forex.
Many experts claim that the hype and fears surrounding the event are exaggerated. The UK economy is steadily expanding and is likely to continue growing even in case of Scotland’s exit.
The head of the Bank of England said earlier that increase in wages is seen to accelerate and that interest rates hike is likely in spring 2015. Comments of Mark Carney kept the British pound from further decline.