Markets Try to Make Sense of Parliament Brexit Ruling

The transcript discusses the market's reaction to a UK court ruling on Brexit, noting that it doesn't pose a major obstacle to the process. The FX market has been volatile, with sterling trading based on political developments rather than economic data. Interest rate dynamics between the US, UK, and Europe show a decoupling from the FX market, indicating political factors negatively impacting sterling. The balance of payments deficit and Brexit uncertainties contribute to sterling's weakness, with occasional rebounds expected. The slow pace of Brexit negotiations, influenced by political changes in France and Germany, adds to the uncertainty.

What uncertainties are expected in the Brexit negotiations as mentioned in the text?

What is the anticipated trend for sterling in the coming months based on the analysis provided?