The pound could surrender some of its recent gains to fall back below $1.40 as U.K. political drama collides with a market that’s positioned for further sterling strength, according to Mizuho Bank Ltd.’s Neil Jones.
The U.K. currency declined against all of its Group-of-10 peers Monday after weekend news reports of a possible rebellion among Conservative lawmakers divided over how to leave the European Union. That added to uncertainty over Prime Minister Theresa May’s future as leader of the party.
