WisdomTree's Nossek: Gilts at risk from overseas selling if sterling slides further

Potential further weakness in the pound

Viktor Nossek, director of research at WisdomTree in Europe, looks at the potential impact on gilts from further weakening or volatility in the UK currency over the long term.

Expectations of a hard Brexit that triggered the marked devaluation of sterling last year have effectively reversed since a now noticeably weakened Prime Minister Theresa May in charge of a minority government must lead the exit negotiations with diminished political capital. Britain looks ready to make more concessions to the EU than previously envisioned. Philip Hammond, the Chancellor of the Exchequer, has already stated the vote to leave the European Union (EU) was not a vote for Britain to become insecure or poorer, thus prioritising the economy over anything else. We believe the st...