Yesterday, Sterling continued to strengthen after Brexit fears simmered down again this month. Firstly, another EU Referendum poll released by the ORB showed the “remain” camp in the lead with a 55% lead, leaving the “exit” vote trailing on 42%, whilst 3% remain undecided. The poll therefore finds that the “Remain” campaign now has a 13-point lead with just one month until the Referendum. This boosted the Pound across the board yesterday.
The UK Inflation report hearings were released yesterday morning. Governor Mark Carney gave his most robust defense yet of the Bank of England’s comments on the upcoming European Union vote. Carney has remained on the fence throughout the campaign and this did not change at yesterday’s press conference. Carney commented “The only side we’ve supported is the pursuit of low, stable and predictable inflation, which is our remit”. Also on the economic docket, the Eurozone powerhouse; Germany released their ZEW economic sentiment. The reading posted a worse than expected 6.4, adding to the current Euro strains of late.
Germany’s data will be today’s main focus, as the IFO Business Climate reading is set to slightly increase again from 106.6 to 106.9. The spotlight will then turn to the US, as the Goods Trade Balance figure is posted. The Goods Trade Balance looks at the difference in value between imported and exported goods. The gauge is set to worsen to -60.1B from the better than expected previous reading of -56.9B. Lastly, the Flash Services PMI from the US is scheduled to be released at 2.45 BST this afternoon.