Currencies
Why Europe’s Biggest Asset Manager Is Shorting the Pound
- Asset manager sees currency weakening to $1.21 by March
- Slowing inflation will enable BOE to start rate cuts in May
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Europe’s biggest asset manager is shorting the pound on the conviction that the Bank of England will start cutting interest rates in the first half of 2024.
Amundi SA anticipates that the UK currency will tumble more than 4% against the dollar as inflation slows and the economy shows the pain of policy tightening, according to Federico Cesarini, head of developed FX at Amundi Investment Institute, the asset management company’s research arm.