The pound is under pressure as the race to replace UK Prime Minister Theresa May produces fresh anxiety about Brexit.
Boris Johnson, the frontrunner to succeed May, has warned that he could take the United Kingdom out of the European Union on October 31 without a deal that protects trade.
Analysts at Bank of America Merrill Lynch said in a note Wednesday that the odds of leaving without a deal have shot up — though it still isn’t their base expectation.
We think persistent uncertainty is the most appropriate forecast,” they said.
Britain’s economy grew 0.3% in May, according to data released Wednesday. That eases the pain of a 0.4% decline in April, but does little to change the picture of a weak economy overall and possible negative growth in the second quarter.