Pound to keep RISING against Euro say experts
The Pound will continue to rise against the Euro throughout Europe, experts predict.
Despite the fact British Prime Minister, Theresa May, last week started the official process of taking the U.K. out of the E.U., the pound has remained strong.
The backlash to the triggering of Article was not as severe as some had predicted which in turn has helped the pound to continue rising against the Euro.
The current exchange rate is approximately £1.17 but some analysts believe that due a “significantly undervalued” pound it could reach £1.20 in the not too distant future.
TorFX head of trading Adam Solomon said: “It’s got to the stage now where there has been that much negativity priced into the pound that any possible scenario of a compromise a Brexit bill will have the potential to prompt a corrective recovery.
“Suddenly, there is a sense of optimism that negotiations between the E.U. and the U.K. won’t be as fraught and some form of interim trade deal could materialise. If big banks start advising their clients to unwind short positions and start betting on the pound, the prospect of a move north of 1.20 will increase.”