Pound's relative overvalution against the euro may be corrected by London's fixed interest markets
The UK corporate bond market may help remove a key obstacle to British membership of the euro by helping to drive the pound lower in coming years. Labour favours joining the euro provided membership is good for the British economy. It will assess in the next two years if that's true before deciding whether to hold a referendum. The pound, however, trades at about DM3.21 ' stronger than UK exporters are likely to put up with. That's a problem the bond market might help solve. UK institutional investors who've stuck to their domestic market will move more of their holdings into euro-d...
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