U.K.’s ‘Horror Movie’ of a Reopening Shrugged Off by Pound Bulls
- Pound drop on delayed reopening likely temporary, Nomura says
- Money markets see Bank of England raising rates in early 2023
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The economic gloom is lifting so fast in the U.K. that even the skeptics are warming to the pound. Never mind a likely delay to the reopening.
Already up more than 4% from this year’s low in January amid one of the world’s fastest vaccine-rollout programs, sterling is winning fresh backing as the faster-than-expected recovery fuels speculation that the Bank of England is about to take a hawkish turn. ABN Amro, a long-time bear, just revised up its pound forecast, as has Citigroup Inc. Bulls predict further gains too, with Nomura International Plc and Societe Generale SA seeing the pound erasing all its post-Brexit losses by year-end.