Bank of America say Sterling has more room to rise

Bank of America cite:

• fading of excessively negative views on the UK economy
• UK remains a largely underinvested/undervalued sector in the asset allocation space
• the currency remains fundamentally undervalued
• the political backdrop is more favourable
• there is a more positive outlook for UK-EU relations

GBP/USD fell on Wednesday in line with a surging USD pretty much everywhere.

Faster cuts from the Fed than BoE could be supportive also.

This article was written by Eamonn Sheridan at www.forexlive.com.