Today is a historic day politically. That much is apparent. What may be less obvious is the day's historic implications on the economy, and - by extension - the British Pound. In the last 3½ years, politics has had a disproportionate effect on the exchange rate but the anchoring of the economy the EU has had a stabilising effect, to some degree, which will, from today, become absent. Our view, for the next 11 months, is that positive economic data will have a relatively small

This week, Sterling shot up to it's highest level since the election. This was on the back of better than expected PMI data from the Services and Manufacturing sectors. This sign of renewed confidence in the UK economy drove Sterling higher across the board. However, the positivity was very short-lived. While the currency ends the week higher than it began, analysts believe that Sterling's inability to hold on to these gains after such positive economic data, suggests under

Sterling fell in the early part of the week due to rumours of a near-term UK interest rate cut.