Pound Bears Flee as Deutsche Bank Sees Election as Game-Changer
- Sterling reaches strongest this year as May calls for election
- Announcement is ‘game changer’ for pound, Saravelos writes
Is Sterling on a Perpetual Devaluation?
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One of the pound’s biggest bears just threw in the towel.
Deutsche Bank AG, who in 2015 accurately predicted the pound would drop to a 31-year low the following year, is exiting all its bearish sterling trades after U.K. Prime Minister Theresa May called for an early election. George Saravelos, the firm’s global co-head of currency research, described the move as a “game changer,” two months after he warned that the pound could fall to as low as $1.05 in what was one of the firm’s “strongest views.”