Sterling enjoyed a festive uplift yesterday, but it was short lived. Yesterday the market jumped when it looked like there was a Brexit deal to be done, Sterling strengthened and for a brief moment the star shone brightly, and the wise men knew which way to go. But, alas, not for long – the deal was then off, and the star didn’t just fizzle out but abruptly turned off, and once more Sterling slipped back to whence it came. Wise men last seen groping around in the dark for the light switch. No guessing from the graphs below when it was announced there was agreement, and then after lunch when there wasn’t! They show the last 48 hrs – so you can see, despite what the headlines say about Sterling taking a hammering – we are actually just back where we started before May and Junker sat down yesterday. In the absence of anything else happening of note it seems Sterling is focused on Brexit commentary and sharp movements one way or the other can be significant. These are risky times to be hoping for better or worse when it comes to exchange rate targets. What is giveth, can be taken away! If you are in any doubt about securing an exchange rate when these blips appear, my advice would is be quick…this market is fickle and as volumes thin out as the festive period progresses we shall see more volatility.