Pound’s Most Vulnerable Moment Is Two Months Away, Citi Says
The pound has bounced back against the dollar and recovered some ground versus the euro this week
Photographer: Miles Willis/BloombergCitigroup Inc. thinks it’s too early to sell the pound now, instead targeting a weaker currency in the second quarter when it sees a ramp up in political risks coinciding with interest-rate cuts for a “double whammy” blow.
These are already the main reasons to sell sterling, said Citigroup strategist Daniel Tobon. While markets have gotten “some sprinklings of these two risks” in the past week, he anticipates the time to bet significantly will come in the lead up to local elections in early May.