Pound Seen Tumbling Whether U.K. Stays in EU or Seeks `Brexit'
- Biggest bears' forecasts aren't contingent on U.K. quitting
- Volatility curve inverts showing concern about referendum
Could ‘Brexit’ Panic Markets into a Recession?
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The biggest pound bear expects the currency to lose 17 percent this year. And that’s if Britain remains part of the European Union.
Svenska Handelsbanken AB isn’t exactly an outlier, either. The next three most pessimistic forecasters in Bloomberg’s sterling survey predict declines of at least 8 percent to levels last seen in 1985, and all of their estimates are based on an assumption citizens will vote to remain in the EU in the forthcoming referendum.