Pound LIVE: GBP Sterling muted – but 'undervaluation' is becoming 'attractive' to buyers

The Prime Minister is under pressure this week, despite surviving an imminent threat to her premiership after the 1922 Committee voted not to change party rules which protect the Prime Minister from a no confidence vote until December.

The Conservative Party leader is now facing calls to name the date of her departure to provide ”clarity” over what she will do if her EU withdrawal deal fails.

Sterling has failed to make large moves following the lack of Brexit progress this week, since the return of Parliament after the Easter break.

The pound is currently trading at €1.1583, largely unmoved from opening levels.

While it is marginally higher against the US dollar at $1.2909, but still remains near two-month lows.

Nikolay Markov, a senior economist at Pictet Asset Management in London, said the outlook for the pound could soon change and is predicting positive movement due to its current undervaluation.

He said: “We are quite constructive about the outlook for the pound in the short term as a hard no-deal Brexit has been completely removed with the pound’s relative undervaluation becoming an attractive proposition.”

Recent data has also been supportive for the pound.

Figures released last week showed retail sales volumes surged by the most in nearly two-and-a-half years in annual terms, way above market expectations.

source: express.co.uk