The Pound’s Rally May Be Ignoring a Big Risk
- BlueBay, which is short pound, sees election within six months
- Vote set to be ‘real knife-edge affair,’ says CIBC’s Stretch
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The pound’s rally this month on growing optimism for a Brexit agreement may be ignoring a big risk: getting any deal through Parliament.
While analysts expect the currency to gain further if British lawmakers sign off on any divorce settlement, they foresee the script going awry if parliament doesn’t approve the deal. Prime Minister Theresa May could be sent back to the negotiating table with the European Union, be forced to hold a second referendum or even call a general election.