Could sterling fall another 20% as current account deficit widens?

Sterling could fall much further against the US dollar if the UK's current account deficit is not addressed, bond managers have said.

The latest data from the Office for National Statistics shows the UK's current account deficit widened once again in the three months to September and now stands at £23.1bn in Q2, beating the previous high of £22.8bn seen in 2013. Sterling made a strong start against both the US dollar and euro this year, until fears over a ‘yes' vote in the Scottish referendum marked a near-term top at just over $1.70. Sterling has fallen sharply since then and is now down 4% against the dollar year to date at just over $1.59, with a widening deficit adding to downwards pressures. Ben Lord, bond m...