Daily Brexit update: Sterling drifts up despite Downing Street rejecting ‘people’s vote’

Sterling has managed to maintain a bid for most of the session

After the latest cantankerous Brexit debate in the House of Commons, we now know that the Parliamentary vote on Brexit has been scheduled for the week beginning on 14th January. That’s as Prime Minister Theresa May continues to insist that there will be no second referendum. Sterling has however, managed to maintain a bid for most of the session. With options demand sliding fast from the around two-year highs last week in both short and longer-term trades, it looks like some anxiety is leaving the market. True, much of this effect shows investors are simply shifting focus to late-January. At that time, when MPs will finally have their meaningful vote, volatility is likely to be more evident. On the other hand, with sterling holding above last week’s lows the instinct to discount the government’s views is at the forefront again.

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