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.