British Pound and Euro Are in a ‘Doom Loop,’ TD Strategist Says
- ‘Policymakers can’t produce the needed energy supply,’ TD says
- Sterling is trading near the lowest levels in 37 years
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The Bank of England has limited power to stop the downward spiral in the UK pound, said strategists at TD Securities, who are predicting more losses in the coming months.
The pound and euro are trapped in a “doom loop” caused by soaring energy prices that feed into weaker economic growth and lower currency values, wrote strategists including James Rossiter in a note on Friday. They expect the UK currency to fall to $1.11 by year-end, down about 3% from its current level.