Pound Traders Brace for Late Night News From EU Brexit Summit
- Market sees U.K. and EU agreeing on a lengthy extension
- ‘A bad surprise could spark a big unexpected move’: Amundi
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Neil Jones is leaving his Mizuho office in the City of London at the usual time on Wednesday. But the potential for Brexit headlines in the currency market’s witching hour means he will be staying up late, glued to screens for news, prices and his hedge fund clients.
The market is betting on U.K. Prime Minister Theresa May and her European Union counterparts to agree a Brexit extension of up to one year at a summit in Brussels. May will make her case for a shorter delay to EU leaders around 5:30 p.m. U.K. time before leaving them to discuss it over dinner, which brings up the possibility of news coming after the New York close and into an infamously volatile period for currency markets.