In Turbulent Times, Carney Finds Unlikely Ally in Placid Pound
- Pound-dollar historical volatility falls to lowest this year
- Sterling's drop post-BOE only takes it to last month's levels
Will Carney Light the Fuse for a BOE February Liftoff?
This article is for subscribers only.
The U.K. pound is becoming an oasis of calm in a market where other major currencies are being jostled by the approaching increase in U.S. interest rates.
The past month through Wednesday was the least volatile trading period for sterling versus the dollar this year, and market-implied rates for future price swings are similarly muted. Even with Thursday’s declines, strategist forecasts signal little change in Britain’s currency through the end of 2015 against both the greenback and euro.