Pound Traders Regroup After Brexit Vote Almost No One Envisioned
- HSBC, Gain Capital, Janus now warn of decline to $1.20s
- Index of top currency-fund returns rises most in 10 months
Will Sterling Rise Under Brexit Adjustment Process?
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The pound just had its worst day ever, and few analysts expect the U.K. currency to recover all of the losses that sent it to the lowest level since 1985 -- at least, not in the foreseeable future.
BNP Paribas SA, one of the biggest sterling bulls before Britain voted to leave the European Union, cut its third-quarter forecast to $1.35, from $1.58. Had the pound ended the day lower on Friday, it would have been in line for a slide to $1.30 or even $1.25, according to Gain Capital Holdings Inc.’s Forex.com unit. Janus Capital Group Inc., which oversees about $190 billion, predicts a year-end level in the $1.20s.