Nov. 17 (Bloomberg) -- The pound's gains versus the euro may be limited given risks that Ireland's crisis may hurt U.K. banks and Britain may face "negative implications" from its links to euro-area economies, according to Citigroup Inc.
"Positives have been priced in already in the latest leg higher of the pound," Valentin Marinov, a London-based currency strategist, said in a research report today. "Additional factors like the exposure of the U.K. banks to peripheral (read Irish) debt is likely to limit euro-pound downside should the situation in the euro-area periphery deteriorate."
The pound traded at 84.86 pence per euro at 10 a.m. in London, near the strongest since Sept. 21. Sterling was at $1.5926 after dropping the most in six months versus the dollar yesterday.
