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FX Markets In Turmoil On Scottish Vote & Japan Economic Downgrade

Cable (GBPUSD) is surging as the first results from the Scottish Referendum hit and a resounding "No" to independence appears confirmed. Almost back to pre-Scottish-Vote-fears level (1.66), cable is up 250 pips in the last 24 hours (its biggest move in over a year). GBP is also strengthening notably against EUR (2-year highs), CHF (2 year highs) and of course the JPY (6 year highs) as the Japanese government admits defeat and downgrades its economic assessment for the first time in 5 months (hence sell JPY as they 'must' do more money printing (despite Japanese businesses all pushing for a stronger JPY). FX markets are extremely volatile this evening and implicitly, equity futures are clanging around cluelessly. The USD Index is flat (gaving retraced all FOMC gains).

Chaos in FX tonight...

 

GBPUSD is retracing all the Scottish vote fears...

 

And GBPJPY punched through 180 (as USDJPY broke 109)

 

As USDJPY is up 2 big figures from pre-FOMC...

 

After Japan downgraded its economic assessment for the first time in 5 months...

  • *JAPAN GOVT CUTS SEPT. ECONOMIC ASSESSMENT ON WEAK CONSUMPTION

Abe, you have a problem (as the Sont CEO recently explained)

  • *MOST JAPAN COS. WOULD PREFER A STRONGER YEN: REUTERS SURVEY

Because nothing says Buy The F##king Parabolic Meltup in today's new normal like an economic downgrade...

 

Gold is also sliding (except in JPY terms of course) - driven more by Japan than Scotland

 

 

 

Charts: Bloomberg