020 7898 0500Sterling has suffered throughout the week, losing ground against both the euro and US dollar despite positive economic data from the UK. All eyes will be on Europe today and whether or not Cameron can agree a deal with the other 27 European Union members – no mean feat if he does – and then he just has to fight for a Yes vote at the referendum!
A quiet day on Monday saw little movement across the board, as the US bank holiday resulted in reduced trade volumes. Sterling found some support on Tuesday ahead of the release of inflation figures from the UK, which hit the forecast level of 0.3% growth throughout January. Despite this, the UK currency came under pressure throughout the afternoon, and continued to fall on Wednesday as investor concern over a potential exit from the European Union saw sterling struggle. This saw sterling fall to a two-week low against the US dollar, falling almost 3 cents since the start of the week against a resurgent US dollar.
Despite there being little news released from the UK throughout Thursday, sterling did find some respite, moving higher across the board as investors looked to lock in their positions before the weekend. Retail sales data will be released this morning, and provides the main point of interest for sterling investors. Aside from this, inflation figures from the US will also be eagerly awaited this afternoon.
