GBP climbed to 10-week high as ‘Scoxit’ worries eased, and Japan March household spending posted biggest monthly gain

British pound rose aggressively and jumped to its 10-week high against USD, due to a wave of optimism after Scotland elections. GBPUSD currently trades at around 1.4119. The Scottish National Party, one of the strongest voices for independence, failed to gain an overall majority from the election. Previously, party leaders have promised to deliver a legal referendum if winning the elections. Therefore, investors believe that the chance of a referendum will be very small, leading to great confidence over the currency.

Japan’s household spending posted an impressive gain, leading to its biggest monthly gain in 18 months. Household spending surged 6.2% in March on a YoY basis, after a 6.6% decline in February. The figure well exceeded the forecast at 1.5%. The positive news slightly boosted JPYUSD, which is currently trading at 0.0092. However, despite the recovery on consumer spending, Japan still faces shortages on vaccines amid the current emergency restrictions. Some analysts believe that Japan’s spending will move with pressure in the mid-term.