Sterling is back on a rollercoaster ride

Sterling is back on the rollercoaster.

Over the last 24 hours, sterling as fluctuated from a steep drop, a recovery following UK unemployment figures that showed unemployment remains at near-record low of 4.7% despite Brexit, then a fall again. There was a short recovery again this morning in the early hours until another shift in negative territory, demonstrating just how volatile the pound is right now.

This morning there is relatively little movement from sterling, and as of 8:00 a.m. BST (3:00 a.m. ET) it has dropped around 0.14% to $1.2273.

Against the euro it is a similar story, a small downward move. Here is how that looks:

The pound has been crashing hard since the UK voted to leave the European Union in June, and investors subsequently dumped the currency. In the past couple of weeks it has frequently plumbed new 31-year lows against the dollar, and dropped to more than 5-year lows on the euro.

In a memo circulated on Monday, UBS economist Dean Turner argues that an attractively cheap pound will cause Sterling to defy expectations and bounce back.