Fund managers back sterling as strongest big currency this year
INVESTMENT managers expect the UK’s rapid recovery to drive up the pound for the first six months of 2014, according to a survey by Capital Spreads, published today.
Just four per cent of the 200 fund managers surveyed expect the economy to weaken at all, while 83.5 per cent are confident growth will continue over the next 12 months.
As a result 56 per cent of the City investors expect the pound to outperform the euro, US dollar and Swiss franc over the first half of the year.
The fund managers have the dollar in second place, with 17.5 per cent expecting it to strengthen most, while 11 per cent are backing the Swiss franc. Only 5.5 per cent see the euro as their best bet of the four.
Nick Lewis from Capital Spreads expects Britain’s recovery to strengthen further as more consumers feel the benefit.
“The point at which wage increases begin to match the cost of living will potentially be the moment when we can herald a full-blown recovery with some certainty,” he said.