BLBG: Pound’s Decline Offers Opportunity to Buy, BNP Paribas Says
Investors should use a possible decline by the pound to about $1.4955 as an opportunity to buy the U.K. currency, according to BNP Paribas SA.
The Bank of England “has once again highlighted its concerns regarding sterling weakness and its impact on inflation,” analysts led by Hans-Guenter Redeker, the London- based global head of currency strategy at BNP Paribas, wrote in a note today. “Hence we expect a sterling pullback to remain limited.”
The currency may rise to around $1.54, should it manage to break through $1.50, BNP said. The pound climbed 0.3 percent to $1.5061 as of 12:06 p.m. in London, bringing its gain in the week to 0.8 percent.
