The brave folks at Nomura have put together an idea for how GBP will fare around the vote on 15 January 2019
This in brief:
In the event of a loss on the vote and Labour calling a no confidence vote
- pound probably lower
- will then rally when its clear Labour doesn't have the numbers to win a no confidence vote
Further out:
- see GBP with limited downside in long-term positions
- downside risks to receive lower pricing in coming weeks
- say speculators are looking for stronger GBP in next few months
