Pound euro exchange rate update: Brexit won't stop sterling to rise against euro in 2018 | City & Business | Finance - World Big News

Pound euro exchange rate update: Brexit won’t stop sterling to rise against euro in 2018 | City & Business | Finance

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The will rise by the second half of the year despite persisting uncertainty caused by , said Valentin Marinov, head of G10 FX Research. 

In an interview with Bloomberg, the financial expert said that European currencies are mistakenly undervalued. 

He said: “Performance is certainly consistent. We do expect the pound to hold its ground against the dollar effectively tracking the euro higher against the dollar. 

“It’s part of our view that European currencies, as a whole, are still very much undervalued. They’re still on the course to regain and correct that misevaluation. 

“I think, however, that the pound could do relatively well against the high-yielding antipodeans downs the road. 

“In this case, it will be more of a reflection of the slowdown in Asia more than anything else.”

Mr Marinov added that although predictions are pessimistic at this point, the sterling will overcome Brexit uncertainties. 

He said:  “On the whole, the pound versus the euro really is stuck in the middle at the moment. 

“We do get some economic data which is disappointing, and at the same time, political uncertainty surrounding Brexit persisting. But we expect it to start abating in the second half of the year.”

In a recent interview with Bloomberg, ING currency strategist Viraj Patel also claimed the market is being too pessimistic about the UK and Brexit. 

He said: “What we’re seeing is a three percent appreciation in the pound and a seven percent depreciation in the dollar so you can see what’s doing the heavy lifting there. 

“But I think the second point to really make here is without a Brexit crystal ball, and I don’t think anyone has that, our pound directional calls are being constantly reassessed on a rolling basis.

“I think right now a real conviction is taking us to $1.40 and for cable, it’s all about the relatives.”