First Minister Nicola Sturgeon announced an independence referendum will take place between Autumn 2018 and Spring 2019, yesterday. Ms Sturgeon said she will seek Scottish Parliament approval for a second referendum next week. Sturgeon said she believes she can win the referendum and will be giving Prime Minster Theresa May an ultimatum regarding the Brexit deal. Sturgeon told reporters she was “met with a brick wall of intransigence” when trying to compromise with May. The Pound remained steady after the news.
Across the pond, investors are anxiously awaiting this week’s FOMC decision. Markets are nearly 100% sure that the Fed will raise interest rates this Wednesday from 0.75% to 1.00%, marking this the first rate increase of the year. Economists’ are forecasting a possible two further hikes for 2017, coming in March, June and December. The Greenback continued to trade tentatively against the Euro and Sterling ahead of this historic release.
A light day in regards to data releases, with only the German ZEW economic sentiment hitting the wires this morning, followed by the monthly Industrial production figure for the Eurozone, this forecasted to show a positive reading for this sector. In the afternoon, the Product Price Index from the US is due to show a decline in producer prices for February.