Pence Traders: Downside Risk and Thushka Maharaj

pence traders: It was also weaker against the euro at 90.35 pence, according to Deutsche Welle. Traders in London said it was the conviction that the government was headed for a "hard Brexit" in which Britain leaves the EU single market that was keeping investors away. The pound was down 0.8 percent at $1.2265, having fallen to $1.2250 earlier in the day. Thushka Maharaj, global strategist at JPMorgan Asset Management, said he saw "further downside risk" to sterling, adding that he remained negative towards the currency over the long term while positioning for a short-term bounce. Deutsche Bank strategist George Saravelos has been predicting a drop in sterling to $1.15, and told the news agency Reuters on Tuesday that the pound might now get there faster. "The more it becomes clear that the policy direction is going toward a hard Brexit, the faster we are going to get there." Bank sector warnings Meanwhile, major banks in the City of London have warned they could start moving staff abroad as early as next year if there is no clarity on whether Britain will retain access to the European single market when it leaves the EU. At a conference in London, senior executives from European divisions of some of the world biggest financial institutions expressed the view that the UK government tough rhetoric on immigration risked harming their business. Analysts are sticking to forecasts of around $1.20-1.25 for sterling, but Friday apparently computer-trader-driven 10-minute slide to a 31-year low of $1.1491 has some wondering if a drop closer towards parity is likely. (news.financializer.com). As reported in the news.