Pound pessimism is unwarranted. (pound devaluation)

Futures (Cedar Falls, Iowa), November, 1997 by Abramson, David L.

The British pound suffered a marked negative turn against Germany's deutsche mark when the Bank of England gained restrictive authority. However, Britain has a sounder economic structure over Germany which will be enable it to withstand the imposition of higher interest rates. The current condition presents a good opportunity to buy the pound against the deutsche mark and earn with a forward discount.

The pendulum of currency market sentiment has swung too far to the negative side of the pound, especially against the D-mark. The British currency, a high-yielding darling of speculators in the first half of 1997, experienced a recent sentiment swing to a pessimistic extreme when it appeared monetary tightening was about to knock the British economy for a loop. ...

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