Sterling rises but Brexit volatility likely to last

Sterling rose for the first time in six days against the euro yesterday as traders speculated it had fallen too far, too fast on speculation the UK is headed for a ‘hard’ Brexit.

It rallied as traders took advantage of its slide to a five-year low against the euro and a drop to its weakest level since 1985 versus the dollar.

It had tumbled after prime minister Theresa May set a March deadline for triggering the UK’s exit from the EU, with its drop hastened by reports that the new premier wouldn’t give financial services special treatment in negotiations with other leaders.