Sterling's sharp plummet in the wake of the EU referendum last June has only made it a more compelling opportunity, says the managing director of a long-established currency hedge fund.
"We're very constructive on sterling. We were bullish on the U.K. economy prior to Brexit and the lower sterling levels have just made it more attractive as entry levels. We do expect sterling to perform well throughout 2017 and also into 2018 if it looks like the momentum on the negotiations is going favorably," Mark Farrington, managing director at Macro Currency Group, told CNBC on the sidelines of the Investors' Choice Awards in London on Thursday evening.
"There has been a lot of hysteria around the negative side of the story and not as much energy invested in looking at the potential positive surprises. More than likely that research will be done this year so I think you'll start to see everything from the think tanks to the political parties themselves starting to emphasise the potential for positive surprises and the market will take the cue from that," he added.
Farrington revealed that his team had used the currency's multiple wobbles during the previous nine months to add to its position and were looking for sterling to achieve a range of $1.30 - $1.35 in the nearer-term before delivering an eventual full reversion to pre-Brexit vote starting levels, around the $1.50 mark.