No let-up in the rhetoric
If Boris Johnson has a strategy, it’s to pressure the EU into making a Brexit deal by threatening to leave.
So far, the EU isn’t buying it. I don’t think that will change because the EU likely believes that parliament will block a no-deal Brexit and/or that Johnson doesn’t have the courage to actually do it.
Either way, the strategy looks like it’s going to stoke fear and uncertainty for the next 2-3 months. In that case, it’s tough to stay in sterling and it’s tough to find a reason to buy it.
The latest comments, along with some fresh fixing sales, have sent the pound back to 1.2140.