Pound Investors Face Months of Volatility Into Brexit Endgame

Barnier comments prove currency’s sensitivity to headlines
November will be in focus as October summit deal seen unlikely

A British ten pound banknote stands in this arranged photograph in London, U.K., on Tuesday, Sept. 19, 2017. Strategists are revising their estimates for the currency after its best week since 2009 saw it gain almost 3 percent as the Bank of England signaled it would look to withdraw stimulus “over the coming months.”Photographer: Chris Ratcliffe/Bloomberg

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By Elizabeth Howcroft and Charlotte Ryan

September 2, 2018 at 11:00 AM UTC

This article is for subscribers only.

The next few months are going to be fun for pound traders.

Sterling’s volatility left political pundits scratching their heads last week, as European Union Chief Negotiator Michel Barnier’s promise to offer the U.K. an unprecedented partnership sent the currency soaring more than 1 percent even though he had said it before. With both sides warning of the risk of no deal, investors are going to become increasingly sensitive to Brexit headlines.