How low could pound fall? One expert is going as long as $1.15

We brought you reports from Bloomberg earlier that the pound could slump as much as 8% – and now we have some commentary from the trading floor about what is anticipated.

As markets opened this morning, the pound headed towards the $1.21 mark, the lowest level since November 2023.

But Tony Redondo, founder at Cosmos Currency Exchange, said this could go all the way down to $1.15.

“The pound has already fallen by over 2.5% against the euro and by nearly 5% against the dollar since Christmas,” he said in comments provided to Money by Newspage.

“Further falls are expected across the board. They are expected to be more muted against the euro given the stagflation fears that hover over the eurozone economy and the political paralysis in its two leading economies, Germany and France. 

“Against the dollar, the pound could continue to freefall. Last Friday’s stellar employment data only adds to the idea gripping the markets that the Federal Reserve will move slowly in cutting interest rates in the US in 2025 in an economy that continues to outperform. 

“Add in the fact that Trump’s inauguration is now just over one week away and the negative economic effect his tariff plans could have on both the UK and eurozone economies could see the pound trade at 1.15 or lower against the greenback.”