The Pound Sterling has enjoyed and Archimedes-esque Eureka moment. Hopefully, it won’t be caught short running nude through the street to brag to its head of state anytime soon… For the first time in a good while (if not ever) it has been the words of Jeremy Corbyn that kick started the rise in value within the domestic currency. Corbyn, around 11:25, proclaimed to an audience of Labour Party activists in Hastings that a second referendum “was on the table”. Alongside confirmation from Downing Street this morning that the Prime Minister will allow informal votes to gauge confidence on her Plan B(s) on Monday, the rhetoric from Corbyn suggested that Brexit Referendum II could gather a majority. Accordingly, markets raced to reward the Pound with an additional 25 basis points of value – as seen within GBPEUR below.
HSBC publicly announced that they are shifting their stance towards Sterling to bullish, willing to hold long positions on the Pound. Analysts at HSBC have suggested that should a second referendum occur and should the public vote to abandon Brexit, the Pound could rally by as much as 20%. The forecasts certainly seem optimistic, however, these perceptions do contribute towards understanding an appetite for British assets at different outcomes of the Brexit impasse.
Discussion and Analysis by Charles Porter
Click Here to Subscribe to the SGM-FX Newsletter
Related Insights
Daily Brief – A testing week
Charles Porter
Tue 21 Oct 2025
A testing week Markets so far have largely endured the admonitions coming from significant figures within the world of finance. The Bank of England’s own Andrew Bailey’s warnings of the risks of a market crash were uncommon for an MPC chair and initially took markets aback. Shortly thereafter, prominent figures warned of a pre-Halloween fright […]
Daily Brief – Calling time on Swissy
Charles Porter
Tue 14 Oct 2025
Calling time on Swissy Switzerland’s Franc may be destined to faulter under its own weight. Despite rock bottom interest rates, the Swiss Franc has been a significant beneficiary of the post-Covid and Trump2 world. EURCHF, a key barometer of European risk, shows some 20-cents worth of Swiss rally post-Covid. The pair has dropped from well […]
Daily Brief – A rising tide lifts all boats
Charles Porter
Thu 16 Oct 2025
A rising tide lifts all boats As the Dollar continues to perform lacklustre oscillations, key pairs remain rangebound. The trend so far this week has been for a mildly weaker Dollar. Given that the Dollar is considered the primary counterparty for most currencies, this creates a rising tide effect across the rest of the market. […]
