Pound Under Siege With Mounting Bets It Will Drop Below $1
- Currency hits a record low as tax-cut plan sows bond selloff
- Morgan Stanley, Nomura cut forecast for pound, seeing downside
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Speculators are betting the UK’s pound will slide to a level that was virtually unthinkable in recent decades: $1 or less.
After the pound tumbled as low as $1.0350 Monday, the weakest on record, options markets show traders expect it to keep falling. Three-month risk-reversal contracts against the pound are near the most bearish since 2016, while others show a 43% chance it will hit $1 before the end of this year.