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23 Mar 2016
Pound weakened by more than the Euro - Investec
Research Team at Investec, suggests that the economic data released yesterday was overshadowed by the tragic events in Brussels yesterday morning.
Key Quotes
“Safe haven flows after the attacks were a prominent theme with the Japanese Yen and US Dollar notable beneficiaries (although while dollar strength has stuck, gains in the Yen have since unwound). With the UK now 3 months away from its EU Referendum date, the Pound weakened by more than the Euro.
Perhaps investors feel that attacks in Europe may see the UK voter base more likely to vote to leave and 'strengthen the case for a Brexit'. We personally don't feel that would be the case, with the Pound just more sensitive to all events with increased speculative positioning, but it is open to interpretation.
Taking a look at yesterday's data, UK Inflation was a little softer than expected, but mainly in line with last month's release.”
Key Quotes
“Safe haven flows after the attacks were a prominent theme with the Japanese Yen and US Dollar notable beneficiaries (although while dollar strength has stuck, gains in the Yen have since unwound). With the UK now 3 months away from its EU Referendum date, the Pound weakened by more than the Euro.
Perhaps investors feel that attacks in Europe may see the UK voter base more likely to vote to leave and 'strengthen the case for a Brexit'. We personally don't feel that would be the case, with the Pound just more sensitive to all events with increased speculative positioning, but it is open to interpretation.
Taking a look at yesterday's data, UK Inflation was a little softer than expected, but mainly in line with last month's release.”