Brexit fears continue to weigh on the Pound
- EUR German Buba President Weidmann Speaks
- AUD NAB Business Confidence: 3
Sterling has slumped drastically over the weekend and continued to fall early yesterday morning, as growing Brexit anxiety causes investor uncertainty worldwide. Sterling fell to an eight week low after a ORB poll of 2,000 people showed a 10 percentage point lead for Britain to leave the EU, which sent it tumbling late Friday night. Yesterday's Guardian/ICM poll also saw the "Leave" camp take a six-point lead.
The Opinium Poll, which is commissioned by the Brexit backing Bruges Group think tank, showed further evidence that the “Leave” camp is gaining momentum. The poll provided voters the option of a choice of free trade agreements with the EU. The new poll shows there are a majority of voters who prefer an economic rather than both economic and political arrangement with the EU.
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UK’s yearly inflation figure will be under scrutiny this morning, with inflation currently at 0.3%. The figure is expected to increase to 0.4%, if this is seen it could provide the Pound with some much needed support. However, if the reading falls below 0.3%, Sterling could be under pressure once again. In the afternoon, the US monthly Retail Sales figure is set to be released. Retail Sales in the States are forecast to drop from 1.8% in April, down to 0.4% for May. The reading will be released ahead of the Fed meeting on Wednesday evening, which could support the Fed’s decision to delay the impending rate rise.