Political sentiment and sterling: Who cares who govs?
The UK is poised to effectively enter a brief period when nobody is really in charge of its government while prime minister Tony Blair heads off on a glorified farewell tour.
The country will now get a new PM it didn’t vote for and may not want. Once, such uncertainty would have resulted in some decent volatility in cable and all sterling-denominated assets. Now, as I wrote in Euromoney way back in October, nobody cares.