UK: Sterling's surprising strength - BBH

Research Team at BBH, suggests that a major development today is sterling's strength as the Sterling inexplicably shot up almost two cents in a matter of minutes in Asia (~$1.4475 to $1.4660). 

Key Quotes

“It quickly came off amid talk of a trading error.  However, on the push back, it found support near $1.4500 and managed to trade back above $1.4600 in the European morning.  One-month implied volatility is making new highs today above 22% (it was near 16.6% on May 27) and the put-call skew is at a new record extreme (~6.9%).  U

K stocks are underperforming, but the FTSE is the best performingG7 equity market over the past week.  UK gilts are also underperforming, with 10-year yields three bp higher near 1.30%, while most Eurozone benchmark yields are lower.”