GBP: By far, Sterling is the most undervalued of G10 currencies, in trade weighted terms standing almost 20% below its long-term fair value (LTFV) and by over 30% against the most expensive currencies (AUD, NZD), which is simply unsustainable.
However, so long as Brexit uncertainty – the reason for its present weakness persists, a more substantial recovery is unlikely, although scope for further depreciation seems limited.
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