Pound Tumbles on Report Scotland may hold 2nd Independence Referendum

The pound tanked to #1.2392 at the early hours of the Asian session, as the Times of London reported that Scotland could ask for a second vote of independency as PM Theresa May triggers the Article 50 in March.

Pound Sterling is sinking today thanks to rumours that Scotland is soon to request a second independence referendum and that the government will announce a cut-off date for European Union migrants looking for permanent residency.

Nicola Sturgeon, first minister of Scotland and leader of the Scottish National Party (SNP), delivers her keynote address to delegates at the SNP Conference in Glasgow, Scotland, on October 15, 2016.

The pound fell 0.46% against the dollar to 1.2405 on Monday morning and was down 0.62% verses to the euro to 1.1724.

Markets are set to react badly to a second vote because of the uncertainty cast over Britain, as it gears up to leave the European Union (EU).

According to the Times newspaper, the government is preparing for Scottish First Minister Nicola Sturgeon to call for a vote on leaving the United Kingdom when the formal process of Brexit begins next month.

Mrs May urged voters north of the border to use the upcoming local government elections to send a “clear message” to the First Minister that they don’t want another vote.

SNP deputy leader Angus Robertson MP said: ” Jeremy Corbyn has made it clear that he and his party are washing their hands of any attempt to listen to the overwhelming democratic will of the people of Scotland.

The party was nearly wiped out in Scotland in the general election which followed hard upon the heels of the 2014 independence referendum.

Leaving the EU’s free trading area is likely to bring bureaucratic pain to businesses trading across the EU. Banks and other financial institutions said they will have to move jobs overseas in order to safeguard their operations across the union. A nascent manufacturing renaissance in the English North has been one of the consequences, with the pound’s weakness supporting British exports. January’s pending home sales data unexpectedly plunged by -2.8% month-on-month despite being expected to increase by 0.8%.

– David Wilkinson contributed reporting.