Nomura: The liquidity of the pound is worse than that of the major currencies and is more vulnerable to capital flows shocks.

According to the Wise Finance app, Morgan Stanley stated that the impact of large-scale capital flows on the British pound is greater than that of the Japanese yen or the euro, and its trading pattern is more similar to some less liquid currencies. The bank's currency analysts found that both the Japanese yen and the euro can withstand a trading volume of 10 billion US dollars, with very small price fluctuations. However, they said that such large-scale trading may lead to unexpected spot price fluctuations in the British pound (the world's fourth largest currency), with fluctuations even exceeding those of currencies with much lower trading volumes such as the Swiss franc or the New Zealand dollar.