Sterling expected to rise against the UAE dirham in 2018, say analysts

Now is the time for non-sterling holders to invest in the UK
By Staff writer
Mon 05 Feb 2018 02:25 PM

Sterling could rise significantly against the US dollar this year, making it an ideal time to invest in the UK, according to analysts.

Mortgage broker Enness UAE and foreign exchange specialist Argentex have completed a review of the markets and have predicted a rise for sterling during 2018.

Chris Canning, foreign exchange dealer at Argentex, said while the UK pound suffered throughout 2017 as the political scene became more and more disrupted, the market appears to be no longer sensitive to the UK political disarray.

“Instead, the markets have seemingly priced-in any negative news which can come, and instead seem very willing to buy the pound on any positive data,” said Canning.

“Pound sterling is currently recovering against most currencies following the post-Brexit crash. The pound is currently at the highest level against the US dollar since Brexit and most forecasts suggest that this could continue.

“Should Brexit negotiations push on well, we could see sharp rises in the pound as investors want to buy into the seemingly ‘cheap’ pound.

“The Dirham is pegged to the US dollar, so this means that for clients in the UAE, the opportunity to take advantage of this relatively ‘undervalued’ pound could soon be diminishing.”

Toby Johncox, principal representative for Enness UAE, said despite a climate of perceived uncertainty, there have always been opportunities in the UK.

“With property prices remaining rather flat, there is room for movement when it comes to asking prices, and it’s likely prices won’t be as low as they are currently,” Johncox  said.

“The forecasts from Argentex are proof that things aren’t going to get any better for holders of non-sterling currency.

“Add to this the climate in the Gulf Corporation Council (GCC), where the wealthy are moving their money into more secure markets, like the UK, and it becomes clear it really is the time to take advantage.”

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