Pound Lives to Fight Another Day as Aberdeen Holds 'Small Long'
- Fund finds a silver lining in U.K.’s economic growth prospects
- Nomura, UBS say investors may re-assess hard Brexit outlook
Mike Amey, managing director at Pimco, discusses the impact of Thursday's U.K. election on sterling. He speaks with Bloomberg's Francine Lacqua on 'Bloomberg Surveillance.' (Source: Bloomberg)
Investors aren’t willing to throw in the towel on the pound just yet.
While the pound slumped about 2 percent against the dollar on news that the U.K. is headed for a hung parliament, the decline is milder than a 7 percent loss some analysts had penciled in. Aberdeen Asset Management Plc says it plans to keep a “very small long” position on sterling, counting on the U.K.’s economic growth prospects. BlueBay Asset Management said it may look to close its short position “if it looks like a soft Brexit is more likely.” Nomura Holdings views the risk-reward of being long sterling as being favorable.