The British pound declined to a three-week trough versus the US dollar after Queen Elizabeth II’s speech, outlining Prime Minister David Cameron’s plans.
The Queen announced early legislation providing an in/out vote by the end of 2015 in order to determine the UK’s membership of the European Union.
Sterling traded at $1.5301, losing around 0.6%, its lowest since May 8. Against the euro, the currency stood at 71.015 pence.
Several people have purchased the pound over the last few days. The market was looking for ways “to trigger a reversal in the positioning and that’s what we got,” said Adam Myers, European Head of FX Strategy at Credit Agricole.
Meanwhile, the UK premier is under pressure to outline the details of the referendum and the changes he wanted from the union.
The material has been provided by InstaForex Company – www.instaforex.com