Pound euro exchange rate: ‘TOO PESSIMISTIC!’ The pound could ROCKET this year
THE POUND will soar this year with more clarity on Brexit and positive surprise in UK economic data, an analyst has said.
Strategist: The pound is good news for us against a resilient Euro
The pound will have some good news this year, ING currency strategist, Viraj Patel said.
Speaking to CNBC, he said: “For us we quite like the pound actually.
“We think that UK positive data surprises are relative to what’s been priced in could lead to a front end repricing there and take cable to sort of 1.40 which has been our conviction call for some time.
“So we’re just looking for that story to kick in the first quarter.”
It’s good news for the pound
Asked whether there could be a potential Bank of England interest rate hike this year, he said it might be possible with positive surprises in UK economic data.
He said: “The polls and the analysts don’t expect anything this year and I think that’s probably the most pessimistic view going in to 2018.
“I think there’s only upside risks here.
“I think if we get some positive data coming through, if we get a Brexit transition deal, those two elements, some combination of that, that could see markets bring forward their expectations of a Bank of England policy rate hike potentially as early as May.
Expert: Pound reaches post-Brexit HIGH against dollar
“That one-off sort of positive rated story could be taking the pound above 1.40.
“Certainly keeping it solid against a resilient euro in that sense as well.
“So it’s good news for the pound for us.”
The pound rose 0.62 percent against the euro to 1.1404 at 22:23 in London.
Sterling climbed 0.67 percent against the dollar to 1.3982 at 22:23 in London.
