Pound’s Dramatic Week Leaves Traders Skeptical of Quick Recovery
- Investors spooked by 6.1% flash crash pessimistic on Brexit
- Pound seen dropping to $1.20 by year-end by Janus’s Myerberg
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After a dramatically dismal week for the pound punctuated by a flash crash in Asia, traders doubt it will shake off its tag of the worst-performing major currency in 2016.
They’re negative because sterling is held hostage by the prospects of a hard Brexit and its impact on the U.K. economy. That adds to concern over how the third-most traded currency pair, the pound-dollar, could crash and bounce back with no apparent explanation beyond speculation that computer-driven trading was to blame.