The referendum debate waged on over the weekend, with further accusations being thrown about with regards to who said what. Boris Johnson the Leave campaigns blockbuster figure suggested a Remain victory would culminate in an extra £2.4bn bill from Brussels to cover the future bailout funds.
Sterling has lost a percent over the weekend as the Leave campaign appears to be gaining more momentum. A poll was released by the Telegraph who surveyed 19000 subscribers which showed 69% of people are backing a Brexit. Considering most of the polls are just 1000 people and have shown a much tighter race this has not been received well by the markets.
Data this week
There is a major amount of data for the UK and Eurozone this week. The first major release of the week will come tomorrow with the Gross Domestic Product being released for the EU. On Wednesday the UK takes centre stage with Manufacturing and Industrial production for the month and year on year. In the afternoon the National Institute of Economic and Social Research release there report a month ahead of the official GDP release. This report gives the market an indication what to expect for Q2 and should anything unexpected be on the report no doubt the market will move.
Wednesday night the Royal Institute of Chartered Surveyors will release the Housing Price Balance for May which will show the current strength of the housing market.
Thursday there is Trade Balance figures for Germany and the UK. The final major release for Europe is the Consumer Price Index on Friday for Germany. This should give an indication into the inflation levels for the Eurozone’s “engine room”.
In my opinion Sterling may not be overly effected by the data releases currently more the opinion polls and what major figures are saying in the press. The EU Referendum will no doubt continue to be the major market mover for the next 3 weeks.