Pound remains under pressure as it loses safe haven status

Sterling had dipped to its lowest level against the dollar in nearly five months as Cameron spoke, although it bounced a little afterwards following the publication of data showing a fall in unemployment in the three months to December.

But by setting out the case for Britain to remain in the 27-member union, the prime minister gave a small comfort to investors who have been selling out of sterling since the start of year and have made the UK currency one of the worst performers of any G10 country so far this year.

Ross Walker, UK economist at Royal Bank of Scotland, warned that sterling was facing an "amber warning light" after a 3.45% decline against the euro and 2.5% fall against the dollar in the first three weeks of the year.

The restoration of calm in the eurozone where periphery countries have returned to the bond markets of late – including Portugal – has enticed investors back into the euro, which in turn has weakened sterling. Foley believes this means that sterling is now "exposed … to the full brunt of the UK fundamentals".

http://www.guardian.co.uk/business/2013/jan/23/pound-under-pressure-safe-haven-eu