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Pound is acting like emerging market currency, says Mark Carney

Pound
The extreme volatility in sterling is more in line with the performance of currencies in developing economies

A wildly swinging pound is trading like an emerging market currency as the next Brexit deadline looms, Bank of England Governor Mark Carney has warned.

The extreme volatility in sterling is more in line with the performance of currencies in developing economies while the pound has now “decoupled” from its peers in other advanced countries “for obvious reasons”, Mr Carney said at an event in New York.

He predicted that financial markets will “move substantially in one way or another depending on the outcome” of Brexit given its “tremendous” importance.

Sterling’s historical volatility and market expectations of wild swings in the currency have surged this year amid worries of a no-deal Brexit...

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