Pound Rally to End as Market Is Wrong on BOE Path, Candriam Says

The pound’s rally looks vulnerable and the currency could fall sharply as markets start to price in deeper interest-rate cuts in the UK, according to a fund manager at Candriam.

Jamie Niven is getting ready to short the pound against the euro, as he says there’s too big a gap between where markets see rates ending up in the UK and euro area. Crowded positioning could exacerbate a slump, he added.