GBP/USD has fallen to a fresh year-to-date low of 1.1830. Economists at ING note that cable could slide to 1.15/14.

Sterling will be in a for a tough summer 

“As a growth-sensitive currency, sterling will be in for a tough summer and cable looks set to trade down to 1.17 and possibly 1.14/15 again. We tentatively think these could again prove the lows for the year if, as we expect the USD turns by year-end.”

“UK politics mean we won’t have a working government until September, but looser fiscal policy this Autumn can help GBP.”