Pound to bounce up to pre-Brexit levels, industry experts predict

A report released today suggested that the Pound is the most undervalued currency in the world. Industry experts predict that Sterling will soar back up to the rates seen before the EU Referendum against its key trading partner, the US Dollar, before Brexit comes to fruition.
The report, by Morgan Stanley, predicts that the Pound will once again go up to pre-referendum levels $1.45 by the end of 2018, when Brexit negotiations are due to be fully underway. David Johnson, Director at currency specialist, Halo Financial, has been looking towards the light at the end of the tunnel for some time, and commented:
“Sterling could continue to gather strength from here on in: Markets have been soothed to some extent by the Article 50 vote and speeches from UK Prime Minister, Theresa May, setting out the Brexit proposals; as well as assurances about the necessary fall-back measures in place if the results of trade negotiations are unsatisfactory.”
“The strong relationship with the US bodes well for a suitable UK-US trade agreement, and other key countries – and currency partners – such as Australia and New Zealand are keen to forge their own trade arrangements with the UK. Brexit will remain firmly in the media spotlight and this can always create wobbles in the markets, but we are unlikely to see such dramatic dips in Sterling’s strength against its major currency pairings as we have witnessed in recent months.”
“We expect that market volatility will be driven largely by events in Europe; given the upcoming contentious elections in France and Holland. Ongoing economic developments in Asia Pacific; and particularly in China, will also have an impact; and so, too, will the performance of commodity related currencies.”
“2017 promises to be a very volatile year for the Pound. Sound foreign exchange planning will be essential for anyone sending money overseas and for all international businesses. Planning ahead for the effects of economic and political uncertainty is crucial in the current climate.”