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Sterling still looks overvalued

Sterling has been amongst the worst performing major currencies over the last month, falling by a similar amount as the Canadian, Australian and New Zealand dollars, which have all been hit by the latest drop in commodity prices. The weakness in sterling seems to be linked to the realisation that an EU referendum could happen as early as this summer, as well as a reassessment of the outlook for monetary policy in the UK relative to that of some of its trading partners.

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