Little Solace in Sight for Pound as U.K. Political Risks Mount
- Morgan Stanley lowers end-year forecast to $1.27 from $1.38
- ING targets 90 pence and $1.20 on prospect of euroskeptic PM
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There is little on the horizon that can help the pound regain its footing as investors brace for subdued U.K. economic data and the risk of a euroskeptic prime minister.
Sterling fell for a third month against the dollar in May and touched its weakest level since January versus the euro on May 31 amid persistent market anxiety about Britain’s political upheaval and its implications for exiting the European Union. Morgan Stanley and ING Groep NV both cut their pound forecasts this week ahead of Theresa May’s official resignation on June 7, which would accelerate campaigns by Conservative lawmakers to take her place.