Pound Volatility Spikes as Traders Grapple With Brexit Headlines
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The pound may be in for a rough ride as contrasting headlines surrounding the fate of Brexit test traders’ nerves.
Sterling whipsawed between gains and losses multiple times on Tuesday as investors adjusted their positions to news about the U.K.’s impending exit from the European Union. The currency tumbled from a six-week high after a report the EU sees the U.K. as too optimistic, then pared some losses after Ireland’s Prime Minister Leo Varadkar said a deal could be done in weeks. Gauges of swings in the currency climbed to a six-month high.