Chart of the Week: UK assets benefit from increased political clarity

Fathom’s Sterling Relative Risk Metric (StRRiM) — constructed from six measures of the relative risk of UK assets — has generally tracked Brexit-related uncertainty quite closely over the past few years. The indicator has fallen back from the levels seen towards the tail end of last year. StRRiM’s currency subcomponent — which typically maintains a close relationship to the aggregate indicator — declined substantially in the wake of last month’s general election, the result of which provided clarity on the whether and the when of the UK’s departure from the EU but not the how.

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