Sterling strength expected after bottoming out – LCG

GBP/USD expected to trade at $1.25 in three months’ time and at $1.27 by Q1, 2018

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Off the table: with no expectations of further easing, sterling could be seen as undervalued

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A mix of positive data on the UK economy, and an unexpected surge in inflation pushing the rate of price increases to beyond the Bank of England’s (BoE) 2% target in February, could signal a reversal of fortune for sterling, which has struggled since the country’s referendum on its membership of the European Union, says Jasper Lawler, a senior market analyst at London Capital Group.

“The first reason for a bit more positivity in the market is that it seems like a