Why Barclays Is Constructive On The British Pound

On CNBC, Ashish Agrawal of Barclays said that he is "relatively constructive" on the sterling in the medium term.

The British currency is vulnerable in the short term due to increased political risks and the currency rallying in the recent period, he said. Although sterling is expected to take a breather in the short run, that’s not likely to derail the overall surge in the currency for the remainder of the year, he added.

The Bank of England is likely to raise interest rates as early as next month.

He also commented that the European Central Bank might go slow in increasing interest rates and might raise rates only in 2023.

Price Action: The GBP/USD pair traded higher by around 0.3% at $1.3739, while the Euro traded higher by around 0.2% against the dollar at the time of writing on Thursday.