BOE dep governor still testifying to lawmakers on Brexit 12 Oct

  • not saying whether markets have over or under reacted to Brexit vote
  • underlying contours of way Brexit will affect UK economy have not changed

No shocks there. The debate is here everyday and will continue for months/years yet.

  • if we are not in single market the current way in which relatively frictionless fin service trade will not continue
  • London's pretty unique fin eco system lowers costs for firms across EU
  • some fin services activities in London could relocate to NY
  • fragmenting euro clearing operations could create fin stability risks
  • potential £20bln hit if UK loses EU financial passport

Words of caution from Cunliffe.

GBPUSD steady for the moment though in what appear to be a 1.2225-1.2325 for the moment

EURGBP 0.8990 in a 0.8965-0.9035 range.

Break outs to accelerate momentum.