Pound’s near-term strength against Euro tipped to extend

Pound Sterling’s rise against the Euro can extend in the near term, according to several currency specialists we follow.

Francesco Pesole, FX Strategist at ING, says there is probably some further room for the Pound to appreciate against the Euro, as Bank of England rate expectations “appear more flexible to a hawkish repricing than the ECB ones”.

The Pound to Euro exchange rate has risen some 100 points to 1.1630, having opened the year at 1.1535.

Gains follow the revision higher of December PMI survey data to show the economy returned to growth territory in a convincing fashion in the final month of the year, casting doubt on the need for imminent rate cuts at the Bank of England.

Fidelity Special Values PLC (LON:FSV) aims to seek out underappreciated companies primarily listed in the UK and is an actively managed contrarian Investment Trust that thrives on volatility and uncertainty.

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