Today, Crispin Odey, the Hedge fund boss, said that he would continue betting against the sterling in the run-up to Brexit, even after it dropped to its lowest point for a year on Tuesday.
Concerns over the prospects of the United Kingdom of striking a deal with the European Union has sent the sterling slipping in recent days, dropping as low as $1.2842 today. The figure is considered the lowest point since August 2017.
In an interview with Reuters, Odey, a Brexit-voter, said that he would proceed to short sterling as the deadline for the United Kingdom withdrawing from the European Union in March 2019 approached.
He stated: “I’ve been short sterling because my sense is that we’ve got to go on our own. All these remainers, they will feel it’s the end of the world when we have to go on our own, but that’s when you buy sterling back.”
He said that the sterling could slip by as far as $1.21, a further drop of over 6 percent. The pound has lost over 10 percent in its value since April and is down by nearly 15 percent since the Brexit referendum in June 2016.
Last Monday, the pound dropped after Liam Fox, the minister for international trade, said that there was a 60 percent probability that the United Kingdom would leave the European Union without a deal, setting the blame on the “intransigence” from the European Commission.
Last week, Mark Carney, the governor of the Bank of England, warned that the risk of the United Kingdom, leaving the European Union, without a deal was “uncomfortably high,” something that he described as a “highly undesirable” situation.
Tomorrow, the Office for National Statistics (ONS) is set to publish the latest growth figures for the economy of the United Kingdom. The Gross Domestic Product is anticipated to have improved by 0.4 percent in the second quarter, having risen by only 0.2per cent during the first quarter.
The ONS is also set to publish figures regarding UK manufacturing output, construction output, and trade.
A market analyst at Forex.com, Fawad Razaqzada, said thatt the data released should “cause a spike in pound volatility.”
He added: “If the figures are overall weaker than expected then the pound could resume its slide.”