Sterling could get weaker, expert warns

There is a possibility that sterling could weaken further in the coming months due to the uncertainty surrounding the general election, one expert has stated.

Economist at Investec Securities David Page noted that it would not be surprising to see sterling dip against its global counterparts.

’We wouldn’t be buying sterling at this stage,’ he remarked.

However, Mr Page added that if the political uncertainties are removed from consideration, then the pound is currently ’desperately undervalued’.

’Our analysis suggests that it could be close to 25 per cent undervalued against fair value to the euro,’ he continued.

He explained that while the value of the British currency will not rise in the short term, its valuation should begin to grow in the next couple of years.

Mr Page was commenting after weak UK retail sales figures caused the value of the currency to take a further hit.

According to Reuters, the euro climbed to 87.38p against the pound following the release of the data last Friday (January 22nd).ADNFCR-2318-ID-19575380-ADNFCR