Currency Note Sterling

Struggling start to the week for sterling

By Callum Holmes February 9th, 2016

Sterling struggled on Monday, losing value against the majority of its trading partners as investor sentiment turned against sterling. With recent polls suggesting that a growing number of the British public are likely to vote in favour of a break from the European Union, the inherent economic uncertainty that would follow such a decision has seen investors abandon sterling in favour of safer haven currencies.

With little economic data released to influence markets, sterling found little support against this wave of negativity and fell to a fresh 13-month lows against the euro. After a positive week against the US dollar last week sterling has given back half of those gains losing one cent against the dollar throughout the day.

A relatively quiet day on the data front today will see market movement continue to be driven by investor sentiment although we do have the release of UK trade balance data this morning, which is expected to be a similar figure to last month, and BRC retail sales data.