Sterling shorts still extreme - Scogen

Economist, Kit Juckes, at Societe Generale explained that there is a bit of clarity, but not much joy for sterling.

Key Quotes:

":So now we know, or are at least we're more confident, that the UK Government will trigger clause 50 and start negotiations to leave the EU within the next 6 months - and be out by the spring of 2019. Disappointment for those clinging to the hope that it would never happen, or one of the many layers of uncertainty plaguing sterling assets removed? You could read it either way.

I was more struck by David Smith's warning not to hope for much fiscal easing from Phillip Hammond, while pointing out at the same time that the UK's fiscal position, and the size of its current account deficit, are at last as bad as they were 40 years ago when James Callaghan had to formally ask for the IMF for a loan. Thanks for that, David. Reassurance on austerity is good news for Gilts, I suppose, but there's nothing here to help sterling except for the fact that shorts are still at extreme levels. We may be in for some choppy trading for a while."