Sterling continues to fall thanks to fears of EU Referendum

Sterling continued to struggle across the board, falling to a fresh seven-year low against the US dollar as uncertainty around UK membership of the European Union (EU) continued to intensify. There was little effect on the markets following the Bank of England (BoE)’s inflation report hearing on Tuesday, with the Central Bank keen to stress that they have no intention to lower interest rates into negative territory. However, renewed fears over the decision of London Mayor Boris Johnson to join the exit campaign saw sterling move lower against both the euro and US dollar throughout the afternoon.

There is little data of note set to be released from the UK today, with markets instead looking to the United States, where investors will await the release of the latest crude oil inventories.