With a date finally set for the long-awaited referendum on Britain’s European Union (EU) membership, and the campaigning already in full swing, the pound is already feeling the weight of uncertainty surrounding the outcome of the In/Out vote – down by an average of 2.5% on the week against the other major currencies. 

The dollar had to do no real work to stay ahead of the fleeing pound. This was just as well, for the few US economic data provided no compelling reason to buy it. Inflation was higher at 1.4% but new home sales and the provisional purchasing managers' index were disappointing. Nevertheless, over the six days the dollar strengthened by a cent against the euro and by four cents against sterling.