Pound Seen Losing the Most If U.K. Vote Delivers No Winner
- Sterling seen rallying to $1.31 if May wins a large majority
- Currency may slump up to 7% if there is no clear verdict
ING's Patel Says Sterling's Worst Case Is Hung Parliament
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The pound could plunge to as low as $1.20 on Friday, a level last seen in January, should the U.K. snap election lead to a hung parliament, according to a Bloomberg poll of analysts.
Such an outcome, though seen as unlikely, would be marginally more negative than even an electoral upset that sees the Labour Party defying odds to emerge the winner, according to the survey of 11 banks and brokerages. That suggests investors don’t share Prime Minister Theresa May’s view that when it comes to Brexit, not having a deal is better than a bad one. A victory for May’s Conservative Party would be supportive of the pound, and this outcome is more or less already priced in, the analysts say.