Another Black Wednesday? Manager warns sterling could fall 10% on 'yes' vote

clock

The pound could dive a further 10% in as little as a week if a 'yes' vote on Scotland is approved, witnessing a sell-off reminiscent of sterling's fall on Black Wednesday more than 20 years ago, a manager has warned.

Sterling has already tumbled sharply on fears over a split with Scotland which is decided this Thursday, but Miton's George Godber has warned it could fall much further if the vote for independence wins. Speaking this morning, almost 22 years to the day since Black Wednesday when the pound tumbled after being forced out of the European Exchange Rate Mechanism, Godber said sterling could tumble to a multi-year low against the dollar very rapidly. "Sterling has already been very weak in the run-up to the Scotland vote - we've seen it fall from $1.72 to $1.62," he told BBC Radio 4. "I...

To continue reading this article...

Join Professional Adviser

  • Unlimited access to real-time news, industry insights and market intelligence.
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters.
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection.
  • Members-only access to the editor’s weekly Friday commentary
  • 
 Be the first to hear about our events and awards programmes.

Join

 

Already a Professional Adviser member?

Login

More on Investment

"It's very important that we don't just allow companies to compete against each other," says Sacha Sadan.

FCA: 'Too early' for rules over sustainable board members

The regulator's head of ESG speaks out at a conference

Sian Barnett Wike
clock 26 May 2023 • 2 min read
Gilt yields near Mini Budget highs after hotter-than-expected UK inflation

Gilt yields near Mini Budget highs after hotter-than-expected UK inflation

Two year gilt yields have risen to 4.48%, the highest level since last September’s peak

Valeria Martinez
clock 26 May 2023 • 2 min read
Paul Ilott (pictured), managing director of Scopic Research

How to consider volatility parameters in multi-asset funds

Key questions for advisers to consider around investment decisions

Paul Ilott
clock 26 May 2023 • 4 min read