Everybody Loves the Pound as Traders Forecast 2007 High to Euro
This article is for subscribers only.
Concerns over the U.K. election forgotten, the pound has become a favorite of foreign-exchange strategists who are predicting a surge to the highest level against the euro in more than seven years.
Sterling just posted its biggest weekly gain versus the single currency in four months and the median forecast in a Bloomberg survey sees it climbing to 70 pence per euro this year, a level last seen in 2007. Markets have brought interest-rate increases back into sight, helping the pound recover all of its losses in the two months before the May 7 vote.