Pound Recovery Looks Distant on Weak U.K. Data, `Brexit' Risks
- Inflation and wages data forecast to remain little changed
- Clarity on referendum date expected from Feb.18-19 EU summit
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Pound bulls hoping for a sustained recovery in the currency may be disappointed as next week brings a combination of domestic data and a European Union summit that may confirm the timing of the U.K.’s referendum on its membership.
Sterling depreciated against most of its 16 major peers this week as Prime Minister David Cameron stepped up lobbying efforts to reach a deal that may allow him to hold a vote as early as June. A date is only likely to be set, though, following the EU summit in Brussels on Feb. 18-19. Reports next week are forecast to show inflation and wage growth remained little changed, according to economists in Bloomberg surveys.