Paul O’Connor, a fund manager at Janus Henderson Investors said: “Currency markets have paid little attention to Brexit news flow in recent months, with attention focused instead on a wide range of competing global macro, policy and political developments.

“As the focus shifts back to the negotiations, investors will be reminded that the most likely outcomes here are for either a bare-bones Brexit or a ‘no-deal’ exit, neither of which look constructive for sentiment on UK growth and assets.

“The upside in sterling seems limited, while this fog of uncertainty overshadows the UK economy and fiscal policy remains on a tightening path.

“It would be no great surprise if today’s drop in sterling was the start of a more meaningful move lower.”



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