Pound Versus Dollar Volatility to Increase on Rate Outlook, Barclays Says

(Bloomberg) -- Swings in the pound-dollar exchange
rate will rise because U.S. economic growth will prove resilient
while that in the U.K. will wane under the weight this year's
interest rate increases, according to Barclays Capital Inc.

``The market is likely to be proved wrong on both U.K. and
U.S. interest rates,'' said Paul Robinson, senior sterling
strategist in London at Barclays Capital, the third-biggest U.K.
bank. ``We expect foreign exchange volatility to increase.''


Read more at Bloomberg Currencies News