020 7898 0500Sterling struggled throughout Monday as confidence in the UK currency was shaken further by the reverberations from David Cameron’s confirmation that the UK will hold a referendum on European Union (EU) membership on 23rd June 2016. The news that London mayor Boris Johnson would back the campaign to leave the EU saw the British currency fall sharply throughout the early hours of the morning; sterling fell almost three cent against the US dollar to reach a fresh seven-year low against the pound.
Against the single currency, sterling saw a more muted reaction, falling to a two-week low before recovering slightly in the afternoon after members of the London Assembly questioned the London Mayor’s decision to back the ‘leave’ campaign.
Although movement throughout the day today is likely to be driven by further reaction to the referendum decision, investors will also be awaiting the latest inflation report hearings form the Bank of England (BoE) who will testify on inflation and the economic outlook of the UK before parliament.
