Sterling pressure remains

Last week the pound again was on the back foot as mixed data and referendum polls gave investors little confidence in the pound.

The most recent polls released over the referendum had gone from Remain to Brexit recently and then back again but with the polls edging back towards a leave vote the pound felt the pressure.

Steady declines across the board for the pound which saw a 3 cent decline against the US dollar and a 2.5 cent loss against the single currency. The dollar gained strength despite oil prices dropping and the hint from Federal Reserve chief, Janet Yellen, in the week that interest rates would not be going up this month as previously had been expected but more likely in July or August, presumably allowing for further inflationary data to be released and of course the results of the EU referendum to be known.

Headlines over the weekend again point towards a swing to Brexit on the polls so we should expect the pound to remain under further selling pressure as the week goes on and the day of voting gets closer. To add to that we have the following key data releases coming up, so make a note if you have an upcoming transfer to make.

Tuesday – UK inflation, EU industrial production, US retail sales.

Wednesday – UK unemployment, EU trade balance, US industrial production, FOMC US interest rate decision and policy statement, NZ GDP, AUS employment data.

Thursday – Swiss interest rate decision, UK retail sales, EU inflation, Bank of England interest rate decision, US inflation, Eurogroup meeting.

Friday – EcoFin meeting, Canadian inflation, speech by ECB president Draghi

A busy data week with some me decisions made but will they have much influence as the EU referendum debate picks up momentum? Only time will tell, so ensure to stay in touch with the team here if you have a transfer to make in the coming days.