Sterling Surprise?

Are traders betting against sterling in danger of a positive surprise? The endless cycle of negative news surrounding BREIXT may create a self reinforcing feedback loop where every news story, every statement from the Government further convinces us that we are doomed and that the pound is going the way of Zimbabwean dollar.

After weeks of doom and gloom our feeling is that we may have reached a bottom, at least for time being, in the price of sterling against the dollar and euro. At this juncture we cannot see how things can appear much worse than they are now. We also are starting to sense that Theresa May might actually be playing that long game all 'Remainers' hoped she was playing when she appointed the 'Three BREXITERS'. Watching, Boris Johnson, David Davies and Liam Fox make fools of themselves while the sober and seemingly wise Phillip Hammond looks on with disdain, the thought occurs that this is stage managed.