BLBG: Sterling Weakness Is ‘Likely to Be Overcome,’ Commerzbank Says
By Daniel Tilles
March 18 (Bloomberg) -- The pound may strengthen against the euro because the British labor market will probably recover faster than continental Europe, according to Commerzbank AG.
“The U.K. labor market is considerably more flexible,” strategists led by Ulrich Leuchtmann in Frankfurt wrote in a report today. “There is a danger of high levels of unemployment on the continent even after the recovery due to the inflexible labor markets. In contrast, the British labor market is likely to be sorted out quite quickly. Once markets start looking beyond the continuing phase of uncertainty, the episode of sterling weakness is likely to be overcome.”
The pound strengthened 0.1 percent to 89.52 pence per euro as of 9:13 a.m. in London.
To contact the reporter on this story: Daniel Tilles in London at dtilles@bloomberg.net
