Skip to main content

Does optimism about Brexit explain the pound’s rise?

With the rise in the pound to its highest level against the US dollar since the eve of the EU referendum not appearing to be justified by relative interest rate expectations, some have argued that it may reflect investors becoming more optimistic, or perhaps less pessimistic about Brexit. But recent developments don’t really appear to support this notion, suggesting that the explanation lies more with the dollar.

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.

By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.