Pound turbulence seen as economics and politics collide

Weaker pound: The sterling slipped to its weakest level versus the euro in 10 months on Aug 11, a day after data signalled sluggish UK growth. — Bloomberg

LONDON: The pound may be in for a bout of volatility, according to analysts at ING Groep NV, after a week that saw the currency confined to its tightest range versus the dollar in almost three years.

Sterling slipped to its weakest level versus the euro in 10 months on Aug 11, a day after data signalled sluggish UK growth, prompting money markets to push back bets on the timing of a Bank of England (BoE) interest-rate hike. Morgan Stanley revised its forecasts to predict parity in euro-sterling, which would be a record.