The pound has become a “political currency” since Brexit, as the currency trajectory has been closely determined by news from the political arena since then. After being one of the worst-performing currencies among the major economies in 2016, what should one expect for the GBP? While fundamentals point out that further devaluation cannot be counted out, we assess that this is going to be highly dependent on the UK’s power to negotiate a trade deal with the EU, as politics will continue to have the greatest impact on the currency for some time yet.