Investors are braced for wild rides in sterling, which is expected to remain volatile ahead of a crucial period in Westminster that will determine whether the UK leaves the EU with or without a deal this month or if Brexit is pushed back to January.
The pound finished last week on a positive note, trading as high as $1.30 against the dollar, rallying sharply after EU and UK leaders reached a new Brexit deal, ahead of Saturday’s House of Commons vote.
But that optimism is set to be tested this week after the UK parliament delayed the key vote, leaving investors “none the wiser” about the outcome. The key questions for currency traders are whether Boris Johnson has a majority to get his deal approved this week and if the EU will extend the October 31 Brexit deadline.