Economics
Pound Rally Leaves Bears Unmoved as Brexit’s Threats Linger
- Survey forecasts U.K. currency to decline to $1.27 by year-end
- Sterling advanced this week as data showed resilient economy
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The pound’s longest winning run since the U.K. shocked financial markets by deciding to leave the European Union is failing to shake strategists, who expect a slide to its weakest level in three decades.
While sterling completed a third weekly gain versus the dollar after reports pointed to resilience in the U.K. economy, the median of analysts’ forecasts compiled by Bloomberg remained unchanged at $1.27. That represents an almost 5 percent drop to levels not seen since 1985, while some banks, including Royal Bank of Canada and HSBC Holdings Plc, expect the pound to slide by about twice that much.