Nomura sees sterling falling to weakest versus dollar since 1985

LONDON, July 6 (Reuters) - Japanese investment bank Nomura said on Wednesday it now expects sterling will slide in the coming months to its lowest level against the U.S. dollar since 1985.

"We remain short GBP/USD in spot and now target $1.15 by end-July, towards $1.10 by end-September," Nomura strategist Jordan Rochester said in a research note. The bank's previous target was $1.18. GBP=

"With the U.S. becoming a key energy export partner for Europe this is leading to a significant terms of trade shock to the benefit of USD," Rochester said.

He added that the Bank of England also looked likely to disappoint investors betting on a 50-basis-point interest rate hike in August.

Sterling was trading at $1.19 as of 1330 GMT.
Reporting by Andy Bruce; editing by David Milliken

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