Pound Undervalued Versus Euro, Says UBS Wealth Management: Chart

(Bloomberg) -- The pound has been sandwiched between the world’s two biggest currencies since the start of the year, making it hard to gauge how markets perceive the U.K. as Brexit negotiations progress. While sterling has gained nearly 5 percent against the dollar, it has fallen 6 percent versus the euro -- a trend that might be about to reverse, according to UBS Wealth Management. “Eventually, economic fundamentals assert themselves, and they suggest that the pound’s journey south against the euro is probably closer to the end than the beginning,” said economist Dean Turner.