Is the Pound Undervalued?

Is the Pound Undervalued?

Since the Brexit vote, the British currency has fallen 16% against the US dollar, and now most experts agree that sterling is fundamentally undervalued, with many seeing the possibility of a 10 to 20% rally. Craig Erlam, senior market analyst at Oanda, says: “A lot of no-deal risk has been priced in over the last few years but that doesn’t mean it won’t get worse for the pound in the event of no-deal.