Cable drops to lowest level since March 2009 - Investec

Research Team at Investec, suggests that the focus continues to be on the sliding Pound, evident since the announcement the EU referendum will be on 23 June allowing markets to price the event risk more accurately and politicians to show their divided opinions. 

Key Quotes

“Concerns over the uncertainty this can bring are hurting the Pound, the risk of capital outflows and paused investment, the uncertain impact on business and jobs. With so many unknowns, analysts, politicians, and the public seem divided on the potential impact and hence on the best path. 

Overnight the Sterling slide continued where it left off at the London close, with the Pound breaking below 1.4000 against the US Dollar for the first time since the aftermath of the collapse of Lehman Brothers in 2009. The Pound fell below 1.2700 against the Euro bringing the 2016 low in sight - even as ECB President Draghi is likely preparing more easing measures to help the bloc in March. It seems reasonable there will be further bouts of Sterling weakness to come before June.”