Scottish referendum set to spur cable volatility

Market still oblivious to risk

papadavid-phyllis

FX markets rarely look months ahead, but with polls narrowing on whether Scotland votes for or against independence from the UK, uncertainty about the outcome and its impact on sterling is on the rise.

Although the referendum is still viewed as a remote risk in the FX market, sterling's volatility is poised to increase in the next three months, say strategists, pointing out that conditions are ripe for potentially large price swings in the coming months.

Volatility is at historic lows across

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