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Bloomberg
Brexit has taken a back seat for traders and fund managers trying to predict the pound’s outlook over the next few months.
Implied volatility in sterling is the among the lowest in the Group-of-10 countries over the next three months.
This is despite the failure of the third round of separation talks between the UK and the European Union last week, and a possible threat to PM Theresa May’s leadership at the Conservative Party Conference
in October.
For markets, it’s fundamentals that will determine the pound’s course.
While the economy is inextricably linked to how Britain and the EU hammer out the terms of their divorce, markets are now treating day-to-day Brexit headlines as nothing more than noise.