The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
Bloomberg
The pound is a bargain and may strengthen to $1.45 once the uncertainty surrounding Brexit starts to get resolved, according to Merian Global Investors Ltd.
The $45 billion London-based money manager has a long position on sterling, betting the economy will improve as soon as the protracted chaos over the UK’s separation from the European Union is over.
“Sterling is cheap particularly if we get any level of clarity,†said Huw Davies, fixed-income investment director, in Singapore.
Merian’s bullishness on the pound puts it at odds with companies such as Nordea Bank AB that have recommended shorting the currency, saying any optimism surrounding Brexit is overdone.
The pound has strengthened against all its Group-of-10 peers this year, gaining 4 percent versus the dollar and reaching a nine-month high of $1.3381. Sterling was at $1.3267 in
London on Tuesday.