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Marcus Ashworth

Why Pound Traders Are Optimistic About Brexit

Many of the downside risks of no deal are already priced in, and Covid and the weak dollar are bigger factors in sterling's future direction.

Failure priced in?

Failure priced in?

Photographer: Bloomberg/Bloomberg

Hope springs eternal. U.K. Prime Minister Boris Johnson is packing his bags for Brussels to meet with European Union leaders as the fraught Brexit trade deal talks shift from technical negotiations to the endgame political haggle.

That he’s prepared to risk the political embarrassment of traveling and coming away empty handed ought to indicate that the British side wants an agreement. Pound traders still want to believe a deal will de done.