The pound has been the worst performing asset since the U.K.’s decision to leave the E.U., and the majority of analysts who’ve changed their forecasts since the referendum results are now projecting the currency to remain depressed.
Related: U.K. ETFs, FTSE 100 Rebound After Brexit Sell-Off
Although the Bank of England keep rates on hold at its most recent meeting, some market observers believe a rate cut is coming in the near-term and that would likely mean more weakness for the pound.
“We need only look to the British Pound’s fast rally on July 20 following unexpected comments out of Bank of England voting member Kristin Forbes. Forbes stood in sharp contrast to BoE Governor Mark Carney as she suggested the central bank’s Monetary Policy Committee should not cut interest rates until there is more evidence of a post-Brexit economic slowdown. It is certainly newsworthy that a voting member would so candidly break rank and speak out against rate cuts,” according to DailyFX.
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CurrencyShares British Pound Sterling Trust
