Pound ‘won’t hit euro parity’

Sterling is likely to drop around 5% against the dollar soon after Britain starts its formal divorce proceedings from the EU, but it is not expected to weaken to parity with the euro, a Reuters poll found.

The pound has also struggled against the euro but only around a sixth of the analysts who answered an extra question said the pound would reach parity with the common currency, according to the survey.

“We don’t think Eur/GBP will fall below parity as the euro is under depreciation pressure as much as sterling,” said Colin Asher at Mizuho Securities.