Investors shun pound as Brexit concerns dominate

Daniel Chambers, head of trading at Sequoia Capital Fund Management, has stopped trading the pound in his nearly $200 million systematic currency portfolio over the course of the year because of the Brexit headline risk.

The pound has had a roller-coaster ride this year as the course of Brexit negotiations has been the single biggest factor for trading the currency, causing many large investors – as well as Bank of England Governor Mark Carney – to say the volatility is equivalent to that of an emerging market currency.

“There is too much uncertainty on the pound. A headline can take out all the reason why you bought the currency in the first place on fundamental views,” said Chambers, who trades mainly G10 currencies, including the dollar, euro and Swiss franc.

Read the full article.