Bank of America: Sterling may further appreciate in the medium term

According to Kamal Sharma, forex strategist at Bank of America, the British pound against the US dollar is the best-performing currency this year, and there is still room for pump as the negative perception of the UK economy fades. The strategist's view is consistent with that of his colleagues in stock strategy, that is, in terms of asset allocation, the UK is still an area of underinvestment/undervaluation. In addition, with the pound still fundamentally undervalued, the political backdrop of diminishing negative impact and positive developments in UK-EU relations should provide support for the pound in the medium term.