Jimmy always rocks.

The Pound tells us time and again that the Bank of England is by far the smartest hands on central bank in the world. Most of the time, the Pound is quoted between the boundaries of the GSDEER.

But at the minute uncertainty over the UK economy is spotted by the BOE, they off-the-cuff sell the pound as if there was no tomorrow, achieving about 20% undervaluation to the currencies of its major trading partners in a few days. UK style, no shame.

If there is only one currency devaluing at the same time, it works.

Once the country has retrieved the cyclical benefits of the move, the BOE allows the Pound to reverse course and regain the boundaries of equilibrium with its major trading partners.

They did it in the eighties. In the early nineties. And also in 2008.

Now the question is whether the current Pound undervaluation is a one time shot until clear skies are back, or else, whether it is just been the first shot that will be followed by additional undervaluation if Brexit ends in a rough quarrel with Europe.

The joke about independent central bankers is already too old...

