Sterling has been amongst the worst performing major currencies over the last month, falling by a similar amount as the Canadian, Australian and New Zealand dollars, which have all been hit by the latest drop in commodity prices. The weakness in sterling seems to be linked to the realisation that an EU referendum could happen as early as this summer, as well as a reassessment of the outlook for monetary policy in the UK relative to that of some of its trading partners.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services