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Feb. 17 (Bloomberg) -- The pound may advance to a three- year high of 80 pence per euro by mid-year as the U.K. economy outperforms the euro region, according to Societe Generale SA.
Investors should bet sterling will appreciate to 82 pence per euro and then reach 80 pence by June 30, Lauren Rosborough, a foreign-exchange strategist in London, wrote today in a note to clients.
“The euro region is very weak and although the U.K. isn’t that strong, in a relative sense it stands out,” Rosborough said today in telephone interview, confirming the note. “The economy is on a stronger foundation.”
The pound weakened 0.2 percent to 83.29 pence per euro at 1:53 p.m. in London after rising 4.7 percent over the past six months. The U.K. currency last traded at 80 pence per euro in November 2008.
The U.K. economy will expand 0.5 percent this year and 1.7 percent in 2013, according to the median of estimates compiled by Bloomberg News. The euro-region’s gross domestic product will contract 0.5 percent in 2012 before growing 1 percent in 2013, separate surveys show.
The pound will be little changed at 83 pence per euro by the middle of the year, according to a Bloomberg survey of financial analysts with the most recent forecasts given the heaviest weightings.
--Editors: Nicholas Reynolds, Paul Dobson
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