Analysts at Rabobank explained that the value of the UK trade weighted index has plunged around 6% since the start of the year. Key Quotes: "Some of the weakness can be associated with the souring of data releases in the early weeks of 2016, but much of the fall can be linked to political uncertainty connected with the June 23 referendum on EU membership." "Given that opinion polls suggest that the vote could still go either way, there is risk of further downside potential in GBP in the coming months." "That said, given the risk that a Brexit could have a detrimental impact on EU coherence and Eurozone growth, we continue to argue that GBP/USD rather than EUR/GBP is a better medium to express a negative sterling view. " For more information, read our latest forex news.