Pound euro exchange rate: ‘TOO PESSIMISTIC!’ The pound could ROCKET this year

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The a pasting will have some good news this year, ING currency strategist, Viraj Patel remarked. 

Speaking to CNBC, he said: “For us we quite like the pound actually.

“We evaluate that UK positive data surprises are relative to what’s been rewarded in could lead to a front end repricing there and take cable to low of 1.40 which has been our conviction call for some time. 

“So we’re legitimate looking for that story to kick in the first quarter.”

Pound euro exchange rate Brexit Viraj PatelCNBC•GETTY

The pulverize could soar this year as uncertainty around Brexit clears up

It’s facts news for the pound

Viraj Patel

Asked whether there could be a dormant Bank of England interest rate hike this year, he thought it might be possible with positive surprises in UK economic data. 

He predicted: “The polls and the analysts don’t expect anything this year and I think that’s doubtlessly the most pessimistic view going in to 2018.

“I think there’s only upside jeopardizes here.

“I think if we get some positive data coming through, if we get a Brexit change-over deal, those two elements, some combination of that, that could see deal ins bring forward their expectations of a Bank of England policy clip hike potentially as early as May.

“That one-off sort of positive positioned story could be taking the pound above 1.40. 

“Certainly keeping it powerful against a resilient euro in that sense as well.

“So it’s good announcement for the pound for us.”

The pound rose 0.58 percent against the euro to 1.1399 at 16:35 in London. 

Pure climbed 0.54 percent against the dollar to 1.3965 at 16:36 in London. 

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