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Sterling Depreciates

Sterling DepreciatesSterling Depreciates

The pound is suffering as the forthcoming referendum on Britain’s membership of the European Union looms large. And with no date for the vote having been set, traders are signaling there’s little chance of a sustained rebound in the UK currency, Bloomberg reported. Sterling depreciated for a second week against the euro as Prime Minister David Cameron lobbied other government leaders on a deal that may allow him to hold a vote as early as June. A date is only likely to be set, though, following a summit in Brussels on Feb. 18-19. Some polls show support for “Brexit” is increasing, with 45% of respondents to a YouGov Plc survey this week saying they’d vote to leave, while 36% wanted to stay and 19% were undecided. The currency slipped 1.2% in the week to 76.99 pence per euro in London, having depreciated in 10 out of the past 11 weeks. It fell Friday to $1.44, paring its weekly gain to 1.6%.

 

Financialtribune.com