Comments from Bank of Montreal on the British pound and the multiple permutations of Brexit possible
(comes via the Financial Times, gated)
- pound "purely impossible to trade at this point"
- "The market anticipates a significant sterling move at some point and you can see this in the way that three-month implied volatility is going ballistic. But spot forex investors are not going to pile into the directional trade until the Brexit path is completely clear."
And, via RBC, commenting on markets expecting May's Brexit agreement to be voted down on December 11:
- "It probably depends on the margin by which [the vote] fails, but the downside for sterling in anything other than a catastrophic failure scenario looks limited"