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Pound to Strengthen to 75 Pence per Euro on Growth, Barrow Says

The pound will strengthen against the euro this year as government debt drags less on growth in the U.K. than in the euro region, Standard Bank said.

“We do not believe that the debt crisis in the euro zone means that there will be a debt crisis in the U.K.,” Steven Barrow, head of Group of 10 currency research at Standard Bank in London. “The government’s budget deficit may be higher than most in the euro zone but high deficits alone do not spell debt downgrades.”

The pound will strengthen to 75 pence per euro in the coming year, he said.

The pound climbed 0.8 percent to 86.21 pence as of 8:51 a.m. in London.

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