020 7898 0500Sterling lost ground across the board on Monday as an increase in political uncertainty saw investor confidence shaken. Sterling hit fresh one-month highs against both the euro and US dollar on Friday, but with the resignation of Iain Duncan Smith from the position of Work and Pensions Secretary resulting in a backlash across financial markets, sterling fell throughout early trading on Monday. Comments from the former cabinet minister brought focus back onto the upcoming referendum on EU membership, and with the Conservative party seemingly divided, investors look unwilling to support sterling at its current level.
Today sees focus return to the fundamentals, with the release of February inflation figures from the UK. After increasing steadily over the past three months, consumer inflation is set to hit 0.4% for the first time in over a year. After a tough start to the week, a positive movement in inflation figures could see sterling recover some lost ground. However, the reverse result could send sterling weakening further.
If you are looking to buy or sell sterling, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.
