Bank of America: The pound may still strengthen next year

ChainCatcher News, Bank of America stated that the pound has weakened in recent weeks, but it may strengthen next year, as the UK is unlikely to be the focus of the trade tariff plan of the elected U.S. President Donald Trump.

Bank of America foreign exchange strategist Kamal Sharma said in a report that the UK's reliance on the service sector will also help mitigate the impact of any tariff measures to some extent. At the same time, he noted that under a Labour government, "the direction of Brexit is not so confrontational." He also mentioned that a stronger dollar after the U.S. election may temporarily limit the rise of the pound against the dollar, but given the political and fiscal volatility in the Eurozone, the euro to pound exchange rate seems likely to decline by 2025.