Market Extra: The pound is ‘extremely undervalued’ right now, according to UBS

Has the pound hit rock bottom yet?

With sterling GBPUSD, -0.0233%GBPEUR, +0.1643% taking another blow this week and touching a more than seven-year low against the euro, some analysts are now speculating it could hit parity with the shared European currency and fall further against the dollar by year’s end.

But those forecasts are way too pessimistic, according to Dean Turner, economist at UBS Wealth Management. In a note out on Wednesday, he argues that the pound has been sold off too hard —particularly against the euro — as markets try to price in the impact of the U.K.

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