The British pound was the strongest currency last week, rising broadly and closing 1.01% higher against the dollar. The gains in the Sterling came with opinion polls showing the stay camp taking a lead over the ‘leave’ camp in the Brexit polls. Economic data was also supportive with retail sales rising more than expected while weaker fundamentals such as inflation and a flat labor market performance were broadly ignored.

Weekly Spot FX Performance – 20/05/2016 (Source: Finviz.com)

The yen and the Swiss franc were the weakest currencies last week as improved market sentiment saw the safe haven currencies give back the gains. Both the yen and the franc lost 1.36% and 1.47% respectively.

Fundamentals for the Week 23/05 – 27/05