Brexit News Is Just Background Noise for Sterling Traders Now
- Implied price swings in sterling among lowest in G-10 peers
- Without ‘new news,’ traders focus on economy, interest rates
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Brexit has taken a back seat for traders and fund managers trying to predict the pound’s outlook over the next few months.
Implied volatility in sterling is the among the lowest in the Group-of-10 countries over the next three months. This is despite the failure of the third round of separation talks between the U.K. and the European Union last week, and a possible threat to Prime Minister Theresa May’s leadership at the Conservative Party Conference in October. For markets, it’s fundamentals that will determine the pound’s course.