"The euro would have a great deal of trouble getting there,” Fullerton says. “We’ve seen the low but then sterling bounced straight back and has ended up pretty much where it was this morning.”
He believes that pre-existing orders to sell euros as the exchange rate goes lower will drive the value of sterling back up.
The recent interest rate cuts haven’t done the pound any favours and torrid economic data coming out of the UK hasn’t helped either. “The situation we’re in now has less to do with euro strength and more to do with sterling weakness,” Fullerton adds.