MORGAN STANLEY: The euro will be worth more than the pound by next year

13 Aug , 2017 Business

Pound Euro

Morgan Stanley says Sterling will sink below €1 by next year.
Surging Eurozone economy will buoy currency.
Brexit uncertainty to weaken pound.

LONDON — The euro will be worth more than Britain’s currency by the end of the first quarter of 2018, analysts from Morgan Stanley said in a client note circulated on Friday.

In the bank’s latest FX Overview paper, a team led by strategist Hans W. Redeker argue that a combination of a stronger euro and a weakening pound will combine to make the euro more valuable than the pound for the first time in its history, and make it — in terms of pure value — the strongest major currency on the planet.

The euro has been on a huge tear during 2017, particularly against the dollar, as investors take note of the improving fortunes of the bloc’s economy, which has seen growth recover to its best levels since the eurozone debt crisis.

It will continue to strengthen and will move “beyond parity” with the pound during the first three months of the year, hitting a peak of £1.02 before weakening a little as the year progresses, the team’s latest forecasts suggest.

By the end of 2018, €1 will be worth £0.91.

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Source:: Businessinsider – Finance

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