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Severe reaction expected if 'yes' succeeds in Scottish referendum - TD Securities

FXStreet (Łódź) - The TD Securities team of analystspoint out that in case of a victory of the "yes" camp in the Scottish referendum, market reaction would be much more severe than in case of the "no" camp's win.

Key quotes

"There is little need to reprice the BoE significantly, but we would expect some fairly symmetric selloff across the curve in short sterling with cable rallying further."

"In the event of a Yes, the biggest issue to highlight is the high and persistent uncertainty that will reign, even if nothing moves forward on the Scottish side."

"In fact, the largest immediate changes would likely be moves as early as the weekend to unseat PM Cam-eron as part of the damage control, while for Scotland, the wait would be for surveys and evidence of whether this has impacted business investment plans."

"Moody’s has the UK at AA1 and there is little chance of a change, but it could offer the first rating agency verdict on the implications of the vote."

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