Corporate foreign exchange news

Published by Mark Smith-HalvorsenSterling will be undervalued and in an uncertain position ahead of the upcoming election, according to Investec Securities.According to David Page, an economist at the investment house, the pound may continue to weaken against the euro in the months ahead, despite a rally against the single currency since the start of the year.He added that the company is not pursuing a buying strategy with sterling at the present time."But if one takes a step back from the political uncertainties, we think that sterling is desperately undervalued, even at these levels," Mr Page stated, adding that internal analysis carried out by the group showed that the pound could be undervalued by as much as 25 per cent.The pound may enjoy a fillip on Tuesday as the Office for National Statistics publishes its latest gross domestic product data, which many expect to herald the UK's escape from recession. For more information on foreign exchange treasury services and risk management, visit our Corporate FX site