Sterling set for 3% fall against euro in levels not seen since 2017
Sterling will tumble to levels not seen since 2017 against the euro as Brexit turmoil outweighs a dovish ECB, according to analysts. The pound is likely to slide toward 92p per euro by year-end, about 3% below current levels and a rate not seen in 21 months, according to JPMorgan Chase.
That pessimism toward the currency is starting to be priced in the options market, where the cost of puts relative to calls is approaching the highest since April. The pound has slumped against the euro this quarter as the risks to Britain’s currency from the contest to replace UK Prime Minister Theresa May and October’s Brexit deadline mount.
