British Pound: Sterling supported as yields retrace – MUFG
The post British Pound: Sterling supported as yields retrace – MUFG appeared on BitcoinEthereumNews.com. MUFG’s Derek Halpenny highlights that implied volatility in GBP/USD has barely moved after Nigel Farage’s decision to resign and recontest his Clacton seat, calling the by‑election a sham with potential further votes if he is sanctioned. He stresses that GBP volatility is more tied to incoming PM Andy Burnham’s economic stance, with lower 10‑year Gilt yields, contained fiscal worries and weaker UK inflation supporting the Pound as a top G10 performer. Politics, yields and Pound performance “Finally, there has also been limited changes to implied vol level in GBP/USD on the back of the announcement from Nigel Farage that he will stand down as MP for Clacton but then contest the same seat in the by-election. This was to protest the investigations by the parliamentary standards committee into his finances on concerns he breached parliamentary rules.” “This will result in the investigat