Do not discount a run on sterling

Is sterling riding for a fall?  The UK’s current account deficit is certainly worryingly large.

But the real reason for sterling’s vulnerability lies not in the current account deficit itself but in its cause.  Exploring what that is leads to a less conventional perspective on currency valuation, but one that is vitally important in today’s financially globalised world.

You can read more in the Markets Insight column I published in the Financial Times on October 28, 2015.