Debate continues as some analysts predict $1.20-$1.30 could hold for sterling this year
by Joseph Adinolfi
Investors should prepare for the British pound to hit parity with the U.S. dollar by the end of the year or early in 2017, said at least one analyst — and should parity happen, it’ll be a first.
After last week’s surprise U.K. vote to exit the European Union trading bloc, sterling fell more than 12% against the dollar on Friday before trimming some of its unprecedented drop late in the U.S. trading day. But bears regained the upper hand on Monday, sending the currency to a fresh 30-year low at $1.3121.
The details of Britain’s exit are murky, at best. Prime Minister David Cameron said he would leave the task of triggering Article 50 of the Lisbon Treaty — the untested clause that governs how countries could exit the bloc — to his successor. That raises questions of timing.