Flash: Sterling forecast at 1.10 versus the euro… yikes!

Think again warns Marc Morley-Freer, Head of Private Client Business at Smart Currency Exchange:

"Fundamentally, I still believe that Sterling is undervalued against its Euro trading partner, but in the near term, I expect to see Sterling push down to 1.10 from 1.17 before recovering ground during 2014. This short term pressure is driven by the poor UK growth outlook, giving way to more monetary stimulus rather than any Eurozone strength."