Sterling traders bet Brexit trade deal will be done, despite the brinkmanship              

A number of new advisory groups have been set up to support the UK's post-Brexit trade talks, it has been announced. File photo

Sterling traders who have grown used to Brexit brinkmanship between London and Brussels are making two assumptions: There’ll probably be a trade deal, and US elections matter more right now.

It’s spurring demand for pound-bullish option bets and putting a kink in the currency’s volatility curve, which peaks at the one-month tenor.