JPMorgan: The UK's "policy vacuum period" will bring an opportunity for the pound to strengthen

JPMorgan's Global Co-Head of Foreign Exchange, Meera Chandan, stated that during the "policy vacuum" ahead of UK Prime Minister Andy Burnham's announcement of the autumn budget, the pound will be supported by its relatively high yield. The budget will provide greater clarity on fiscal policy. Before the budget is released—typically in November—pound trading will "depend on more concrete factors, namely economic growth and how the Bank of England will respond." "Economic growth has delivered upside surprises, performing better than the Bank of England's forecasts and better than market consensus." The pound's status as the highest-yielding currency among the G10 "has kept the pound remarkably resilient."