The Brexit process is in turmoil but sterling is rising. Why?
Smart Money: Is now a good time to make a big sterling purchase or should you wait?
Markets appear to have chosen to take a positive view of the Brexit outcome based largely on the view that the House of Commons does not support a no-deal Brexit. Photograph: Bloomberg
British politics is in turmoil and the outcome of Brexit remains hugely uncertain. Yet in the last couple of weeks sterling has rallied strongly on the markets and is now at around 87p against the euro.
Investors seem to be ignoring the risks of a no-deal crash and the resulting damage to the UK economy and have been buying into sterling in the last short while. Why?