Pound Investors Skeptical May and Corbyn Will Dispel Brexit Fog
- ‘Good deal of downside in pound’ if things go wrong: Aberdeen
- Confirmation of a short extension would usher in gains: Janus
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The pound’s recovery on U.K. Prime Minister Theresa May seeking help from opponent Jeremy Corbyn to solve Brexit has yet to convince fund managers to bet on a big relief rally.
Aberdeen Standard Investments is avoiding the currency given uncertainty and volatility remain high, while Investec Asset Management dumped its long position in the pound last week. It will take a decisive announcement on a Brexit deal and extension to inspire traders to go all in on pound strength, according to Janus Henderson Investors.