After yesterday's "peak" Brexit chaos, which slammed cable to a 21 month low...
... currency traders have finally had enough, and are making their disgust public.
While the pound may recover some of its losses in the long run, Ensemble Capital is one fund that will watch from the sidelines, and refuses to trade the currency due to ongoing uncertainty over Brexit, said Damien Loh, chief investment officer at the Singapore-based hedge fund.
"I’m staying out of it - it’s basically like trying to pick a roller coaster as your commuter," says Loh, who oversees an artificial intelligence-driven hedge fund he jointly set up with former JPMorgan Chase & Co. FX option trader, Atsuo Ogaki.
"It’s so headline driven and everyone feels they’re entitled to give their opinion. So do I really want to be open to the vagaries of someone’s trading opinion right now? Not really.”
Others, such as AMP Capital, were even more explicit in their disgust over what has become a headline-driven, algorithmic love/hate fest:
"It’s a mess - in a world of turmoil Brexit has become a bit of comic relief, it’s like a British comedy,” Shane Oliver, head of investment strategy at the $138BN Sydney-based asset fund, told Bloomberg.
"It’s more than two years now since the Brexit vote and most of that time leaders have taken to arguing among themselves."
"I’ll say stay away for now. It’s just too hard to trade the pound. You can’t really trade it on technicals because it’s driven by political announcements that flip and flop."
"What you’d want to see is more certainty about which way this will go. The dust needs to settle before you can make decisions based on fundamentals for the pound."
Alas for Shane, if he is indeed waiting for "certainty" before he resumes trading, he will be waiting a long, long time.
We give the last word to Bill Blain who summarized the mess best: "yesterdays no vote decision, and the likelihood Europe is not going to give us any change to the current agreement, and Derivative Contracts to be settled in 90 days time will need somewhere to settle… and its clear we’re in a horrible mess."