Renewable Energy

THE REUTERS GRAPHIC-Reading the Brexit tea leaves: Moves in sterling

Credit: REUTERS/Phil Noble

Sterling has been the focus for global investors rattled by Britain's planned departure from the European Union, plunging immediately after the vote to leave and then moving wildly ever since on Brexit-related headlines.

By Ritvik Carvalho

LONDON, May 24 (Reuters) - Sterling has been the focus for global investors rattled by Britain's planned departure from the European Union, plunging immediately after the vote to leave and then moving wildly ever since on Brexit-related headlines.

Click https://tmsnrt.rs/2WW8QBb for an interactive Reuters graphic on Brexit and the moves in sterling.

Investors have largely been positioned for the pound to weaken -- adding to those bets as Britain first struggled to agree a withdrawal plan with Brussels, and then as lawmakers in London this year rejected the deal three times.

Recent falls in the pound have been pronounced because investors had cut back on short positions, hoping Prime Minister Theresa May would reach a compromise with the opposition Labour Party over her Brexit deal.

But the failure of those talks, and the prospect of a new eurosceptic prime minister ahead of an Oct. 31 Brexit deadline, has renewed investor jitters that the UK could leave without any agreement to smooth economic disruption.

Such a no-deal Brexit, investors warn, would send sterling reeling to multi-decade lows.

(Graphic by Prasanta Kumar Dutta Writing by Tommy Reggiori Wilkes Editing by Catherine Evans)

((thomas.wilkes@tr.com; Reuters Messaging: thomas.wilkes.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Latest Markets Videos

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More