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Reuters: Eurizon SLJ Says Sterling to Rise to $1.55

London – Sterling might rally to a three-year high of $1.55 if a cliff-edge Brexit is avoided by the United Kingdom, Stephen Jen, co-chief investment officer of Eurizon SLJ Capital, a London-based hedge fund said on Wednesday.

With a lot of short positions rife in currency markets due to a rush by investors and corporate treasurers to hedge against Brexit risks, the British pound is one of the most undervalued currencies among its developed market peers, Jen told the Reuters Investment Outlook Summit.

“I think we’re going to see an inactive ECB for much of next year versus an active Fed,” he said, adding even if the European Central Bank were to raise interest rates, they would remain in negative territory.

Read the original article on the ‘Reuters’ website.

Posted on the 15/11/2018 at 3:23pm by Admin.