Report
STERLING STILL DE-CORRELATED FROM BREXIT
After testing a recent high on 3 September, sterling went back on the retreat, with negotiations over the future relations between the United Kingdom and European Union having seemingly run into a brick wall. With Boris Johnson’s threat to end trade talks on 15 October, unless there is an agreement by then, sterling has displayed renewed volatility. Even after sterling’s recent correction, our view is that volatility is set to rise further in coming weeks, as the positions of the United Kingdom and the European Union appear to be miles apart.
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