EU referendum driving the Pound down

Although last week’s trading halted at 5pm on Friday afternoon it did not stop the markets reacting to the current situation regarding the EU referendum. David Cameron addressed the nation on Saturday evening from Brussels to confirm the date of Thursday 23rd of June as the day vote will be held on whether the UK will leave the EU. On Saturday evening the market was relatively steady when news of the referendum broke out but it was on Sunday evening when the markets came to life as the mayor of London Boris Johnson announced that he will support the Brexit which has come as a shock to many and has had a detrimental affect on the Pound.

Sterling lost over a cent and a half on the Dollar whilst also losing nearly 2 cents on the Euro. Last week saw a slight recovery for Sterling but this sensitive subject of the EU referendum has seemingly derailed the revival of the Pound. These next few months will bring huge uncertainty on the UK’s relationship with the EU and with this could see the Pound dragged back even further so should you have requirements for sending currency abroad it is worth keeping a sharp eye on these current affairs and on the rates.

Data releases this week

Monday:
9.00am – Markit services & PMI – Eurozone
14.45pm – Markit Manufacturing – US

Tuesday:
07.00am – GDP – Germany
15.00pm – Consumer Confidence – US

Wednesday:
14.45pm – Markit service & PMI – US
15.00pm – New home sales – US

Thursday:
8.55am – Unemployment rate – Germany
9.30am – GDP – UK
10.00am – Consumer price index – Eurozone
13.30pm – Durable goods orders – US
21.45pm – Trade balance – NZ

Friday:
13.00pm – Consumer price index – Germany
13.30pm – GDP – US

With the recent news on the EU referendum expect high volatility on the markets this week and to avoid any upsets with your currency needs get in touch with you account manager today here at Currency Index.