Overall, there is scope for some further unwinding of expectations surrounding a ‘hard’ Brexit and also some further unwinding of short Sterling positions. This combination is likely to give Sterling a firm underlying bias, especially with the dollar vulnerable to a correction, although momentum will tend to fade on any approach to the 1.3000 area. Sterling gained strong support over the week with the highest level against the dollar for close to two months and just before the flash crash with a move above 1.2700. Sterling also strengthened to 12-week highs against the Euro. The UK currency gained support after ... (full story)