Societé Generale analysts suggests that the sterling is likely to remain choppy and potentially untradeable in the week ahead.
Key Quotes
“CFTC data, now updated to last Tuesday, show a small net short overall as market squares its books. That’s not surprising but suggests we will see choppy trading.”
“There’s a Cabinet meeting today, which will probably see a decision not to have a 3rd meaningful vote on PMs unpopular Withdrawal Agreement tomorrow.”
“A series of ‘indicative votes’ are likely on Wed to test the water & see what could be successfully pushed through parliament and the PM probably hopes this will convince Brexiteers that her Agreement is preferable to a long delay to Brexit.”
“A ‘No deal’ exit remains possible, in large part because if nothing else is agreed, that’s what happens by default.”