The pound fell off the cliff yesterday as UK politicians, including the new PM Boris Johnson, ramped up rhetoric over a no-deal Brexit, prompting investors to increase bets with regards to such an outcome. In Japan, the BoJ kept its policy and forward guidance unchanged, noting that it “will not hesitate to take additional easing measures”. Market attention may now fall to the new round of US-China trade negotiations, which ends tomorrow.
Pound Collapses as Fears of No-deal Brexit Increase
The pound collapsed against all the other G10 currencies yesterday. It tumbled the most against NOK, CHF and EUR, while the currencies that eked out the least gains against their British counterpart were JPY and AUD.
What prompted market participants to start selling pounds was once again developments surrounding the UK political landscape, and especially Brexit. The first hit came by...
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