Analysts Question Pound Negativity as Crucial Brexit Talks Begin
- Next round of U.K.-EU negotiations to start this week
- ING and Nordea say euro-sterling unlikely to reach parity
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The pound’s four-week slide versus the euro may be overdone, according to analysts at ING Groep NV and Nordea Bank AB, with both saying the currency pair is unlikely to reach parity.
Sterling’s decline pushed it to the weakest level in 10 months against Europe’s shared currency last week, while it halted a three-week drop versus the dollar. Investors will now look to the next round of Brexit negotiations between the U.K. and the European Union starting this week, as they’re likely to set the tone for future talks and determine short-term direction in Britain’s currency.