Pound's Summer Woes Set to Continue as U.K. Lawmakers Return
- Sterling posted fourth straight monthly drop against euro
- Pound’s three-month implied volatility lowest among G-10 peers
A collection of five, ten, twenty and fifty British pound banknotes sit in this arranged photograph in London, U.K., on Thursday, Oct. 13, 2016. The U.K. currency is getting harder to trade, and to predict, because the nation’s exit from the European Union has changed the rules of engagement.
Photographer: Miles Willis/BloombergThis article is for subscribers only.
The pound posted its fourth straight monthly decline versus the euro in August and the outlook for September may not be much rosier.
Sterling concluded a second weekly advance against the dollar Friday. Still, that wasn’t enough to prevent its steepest monthly drop versus the U.S. currency since October last month as progress on Brexit talks between the U.K. and the European Union ground to a near standstill, ending in acrimony on Aug. 31.