ING Warns Sterling Could Fall Further Amid UK Political Uncertainty, Risks 3-4% Premium

According to ING analyst Chris Turner on May 18, sterling faces further depreciation risk if UK political uncertainty persists. Turner cited potential political developments including Andi Burnham’s bid for a parliamentary seat in June, with possible leadership elections in July and August. “International investors may seek to avoid exposure to UK assets during this period,” Turner said, adding that in extreme cases, sterling could face an additional 3-4% risk premium.