Positive day for sterling tails off once again due to EU Referendum speculation

A positive start to the day saw sterling rise close to a one-month high against the US dollar on Wednesday. US Federal Reserve chair Yellen preached caution when she spoke on Tuesday evening, expressing concern over prolonged low inflation in the US, and sterling saw strong gains throughout the morning on the back of this, with positive movement also seen against the euro. However, with no economic data released from the UK to support these levels, and with fears over a British exit from the EU still at the surface, sterling steadily lost ground throughout the afternoon.

Today sees attention return to the UK with a slew of data released. This morning will bring a press conference from Bank of England (BoE) Governor Carney, where he is expected to talk about the financial stability of the UK. Following this, we will see the release of the latest current account deficit and economic growth throughout the previous quarter. Should Carney’s speech hold any surprises, or any following economic data hold unexpected results, we could see some significant movement for sterling.

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