Mitsubishi UFJ's Hardman Says Sterling Unlikely to See Significant Further Gains

According to Mitsubishi UFJ Bank's Lee Hardman on July 20, sterling is unlikely to see significant further gains despite rising inflation-adjusted real yields and easing fiscal concerns. Hardman noted that following recent strong appreciation, the market has priced in substantial positive sentiment, which will limit upside potential for the pound. Energy prices have risen due to U.S.-Iran tensions, boosting UK bond yields, while incoming Prime Minister Andy Burnham's fiscal responsibility pledges have reduced political risk concerns.
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