According to Bloomberg, the U.K. pound has retreated from its strongest level in two years against the euro. BNP Paribas has noted that because of Scotland's nearing referendum, attitudes toward the pound remains largely unsettled. The future of the pound has been a central aspect to the debate, as Prime Minister David Cameron rules out any possibility of sharing Sterling with a newly independent state.
The Wall Street Journal reports that U.K. data showed stagnant earning growth in June, resulting in Sterling's low, falling 0.1% to $1.7135, having been as high as $1.7192 two days ago, the most since October 2008.
Phyllis Papadavid, a London-based senior global-currency strategist said, in a telephone interview with Bloomberg, "The market's attention to the referendum is growing and will continue to grow as we head into September. Our base case is that they don't vote for independence but the risk in the run up to the vote and the potential uncertainty around the actual vote will boost sterling volatility,"
A current poll shows that a significant number of people want to refrain from ending the 307- year union and remain within the U.K. However, earlier this month, polls showed that support of Scotland breaking away was at 34 percent and there are still enough people undecided to make the change possible.
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