Pound Runs Into Resurgent Political Risks as BOE Bets Fade
- Poor performance by Tories Thursday could hurt pound: CIBC
- EU negotiator Barnier raises possibility of a no-deal Brexit
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Just when it looked like things couldn’t get any worse for the pound, political risks are back on the market’s radar.
Sterling is vulnerable to Thursday’s local elections in England, the resurgence of Brexit uncertainties and the resignation of one of Prime Minister Theresa May’s key pro-European allies in government, according to strategists. The currency made a feeble recovery Wednesday after five days of losses, as disappointing economic data has undermined the prospect of the Bank of England raising interest rates next week.