HSBC: Pound sterling overvalued, may fall against currencies with lower valuations.

HSBC analysts stated in a report that the valuation of the British pound is on the high side, and its performance may lag behind currencies such as the Canadian dollar, New Zealand dollar, Euro, and Swiss Franc which have low valuations. HSBC has issued a public trading recommendation to sell the pound against the Australian dollar, as the bank predicts that UK data will weaken, the Bank of England will further lower interest rates, while the Reserve Bank of Australia is considering increasing rates. Their latest model results suggest selling the pound against the Canadian dollar, New Zealand dollar, and Swiss Franc, while buying the Euro against the pound.