Pound forecast cut at Citi

|By:, SA News Editor

With markets already pricing in "considerable" tightening from the Bank of England, what upside surprises are left for the pound, asks Citi's Valentin Marinov, his team forecasting the currency to strengthen to no more than $1.72 by year-end vs. a previous estimate of $1.77.

Investors, says Marinov. are now starting to pay attention to downside risks, like September's Scottish vote for independence and the role of the U.K. in a more integrated EU.

The pound, of course, has been on a roll, up 12% over the last year - making it the best performer among 10 developed nation currencies tracked by Bloomberg.