Saturday, May 18

Day: May 14, 2020

Pound set to continue deep slump
Featured, United Kingdom

Pound set to continue deep slump

    As the pound extends the deepest slump among developed-world currencies, a host of market indicators are converging to suggest the worst is yet to come. Sterling slid more than 3% in the past month, with losses accelerating this week as data showed the U.K. economy may be headed for the deepest recession in three centuries amid the coronavirus crisis. Technical charts and option pricing point to more pain for the currency as money-market bets rise that the Bank of England will cut interest rates below zero next year to revive growth. Governor Andrew Bailey said Wednesday it’s “pretty clear” investors expect more quantitative easing from the BOE, and that monetary loosening is helping the government fund the cost of economic aid amid the pandemic. Deputy Governor B...