Pound Looks Placid in Brexit Break Before Parliament Meets Again
- Currency less sensitive to good Brexit news: TD’s Rumpeltin
- Sterling may weaken on fragile economy, BOE inertia: CIBC
A pedestrian walks past the Bank of England in the City of London.
Photographer: Simon Dawson/BloombergThis article is for subscribers only.
Investor sentiment on the pound is improving after a delay to Brexit, though the return of lawmakers next week may disturb the calm.
Volatility in the currency has fallen to the lowest in years and options markets signal there are fewer bets against sterling after Prime Minister Theresa May gained a six-month reprieve from the European Union to try to agree a way forward. Parliament and U.K. markets will return Tuesday after a Easter recess, with investors likely to stay cautious until a divorce deal is agreed.