The U.K. just got a new government, the Bank of England held off from a knee-jerk interest-rate cut and the pound posted its best rally in four months. Yet strategists say these are merely the opening chapters of a post-Brexit saga that has further losses in store for the nation’s currency.
Sterling will slump almost 4 percent by year-end to $1.27, according to the median estimate of its 10 most-accurate forecasters, all of whom have revised their predictions since the June 23 vote to quit the European Union. Options traders are more pessimistic on the pound than any of its major peers.
