| Reports of a possible agreement on the size of the Brexit divorce bill that could pave the way for a trade agreement once the UK leaves the EU have prompted a surge in the value of Sterling, but the longer term picture is a lot more disturbing.
The Labour party has recently admitted that it has carried out "war-game-type scenario-planning" for events such as "a run on the pound" so that it is ready if it is asked to form the next government. The divisions in the Conservative party make a Corbyn victory a distinct possibility and the collapse of the exchange rate could even happen before that if the Brexit talks break down during the final stages of the negotiations. | 
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