Pound UPDATE live: Sterling to ROCKET in 2018 as market is primed for Brexit breakthrough
THE pound is set to soar against the dollar in 2018 as traders are becoming unfazed by negative Brexit news but likely to buy at the signs of any breakthrough, an investment expert has said.
Investment expert: Sterling set to SOAR in 2018
UBS Head of UK Investment Geoffrey Yu said the sterling is set to “stay the course” in 2018.
Speaking on Bloomberg News, Mr Yu said: “Stay the course. We are absolutely staying the course here, you know. Good chunk of that is a dollar story. But put it this way.
He said the rate of the pound to the dollar remains asymmetric. He said: “If we get bad news for the UK on Brexit or the perception of bad news, I think clients are like ‘whatever’ - more of the same.
“Whereby, if it is good news in upward revision to forecast. Higher inflation, things like that.
We still think it’s going to be an upside for sterling for cable at least
“Then, ok, this is something that I was not positioned for. So I either reduce my short or add to my longs.
“As long as that asymmetry is in place, we still think it’s going to be an upside for sterling for cable at least.
He added: “Euro-sterling probably flat for now because we are quite positive on the euro as well.
“But really sterling, on aggregate, still a buy.”
Expert: Pound will BENEFIT if we get transitional agreement
GBP/USD is currently at around $1.139, remaining close to the morning’s opening levels.
Sterling rose against the euro and dollar on Thursday after the Bank of England announced interest rates would remain at 0.5 percent.
The Bank of England said interest rates probably needed to rise sooner than it thought three months ago, after it raised its economic growth forecasts for Britain due to the strong global recovery.
Rob Clifford, commercial director at SDL Group, told Express.co.uk: “I think it’s likely that a hike in rates will happen a shade sooner than first anticipated, but I question if that is going to have the negative impact many fear.
Related articles
“With inflation currently at three per cent, well above the MPC’s two per cent target, it’s inevitable that the Bank of England will consider a further rise in rates to try to curtail the pace of inflation.
“It’s something that’s going to happen and, arguably, all of the signs suggest that it’s a move consumers are anticipating.”
