4 Quotes by Teis Knuthsen

Sterling is overvalued and the economy is tending lower.

Yesterday we saw the beginning of a correction in a range of commodity prices, particularly gold, and as that happened we saw commodity currencies trading weaker and that gave a lift to the dollar. That theme is still valid.

We consider sterling to be overvalued and expect it to weaken against the dollar in tune with rising expectations for a rate cut by the BOE. Until we get further confirmation that BOE will cut, sterling will be volatile.

What's been driving the currency recently is the fact that money markets have been warming up to a series of rate hikes.