Foreign exchange analysts at Danske Bank expect near-term Pound support on political grounds with a convincing Labour victory heralding increased stability while there are on-going French concerns. The bank still considers that the overall UK economic fundamentals will undermine the currency, especially with an August Bank of England rate cut. The Pound to Euro (GBP/EUR) exchange rate has retreated to 1.1775 from 22-month highs above 1.19 and Danske expects a net retreat to 1.15 on a 12-month view. On political grounds, Danske sees scope for the Pound to make headway. Assuming a convincing Labour victory, the bank ... (full story)