The UK’s exit from the European Union is causing volatility in GBP, says Saxo Bank’s head of FX strategy John Hardy, and may be the start of a squeeze on sterling pairs.

He says that ad hoc news about Brexit is affecting sterling, with prime minster Theresa May’s latest announcement to increase the UK parliament’s involvement in the EU exit process boosting the struggling pound.

Hardy adds that although the GBP slide has been justified to a degree, more value seems to be entering the market.