Goldman Sachs “believes Britain will remain in the EU, but its macro markets strategy team has looked at what would happen to the pound if the vote goes the other way. It predicts that such an outcome would alarm foreign investors and put them off injecting capital into Britain, placing pressure on the current account deficit,” reports The Guardian.
Previously, currency traders saw the pound as one of the developed market currencies that could rally against the dollar because the Bank of England was likely to raise interest rates. That did not happen and now bets are that BOE stands pat.
CurrencyShares British Pound Sterling Trust
