Amundi Asset Management takes a more positive view on British pound

Amundi Asset Management Shifts to Positive Outlook on British Pound Amid Euro Weakness

Amundi's Changing Perspective on Sterling and Euro Dynamics

Market Context and Recent Sterling Performance

LONDON, Oct 5 (Reuters) - Europe's largest asset manager Amundi has taken a more positive view on sterling in the past month, partly as concern around French fiscal worries hurt euro zone markets, its head of global currencies said on Monday.

Sterling rallied over 1% against the euro last week, its biggest weekly jump since March, and is trading around 84.76 pence per euro.

Euro Weakness Driven by French Fiscal Concerns

The euro has been hurt as concerns about France's ability to rein in its budget deficit spark sharp selling in French bonds, leaving currency investors to look for alternatives.

Amundi's Currency Strategy and Outlook

Positive Sentiment Towards Dollar and Pound

Andreas König, head of global FX at Amundi Asset Management said they were positive on the dollar, and also had recently taken a more upbeat view on the pound.

Technical and Political Factors Influencing Sterling

"Sterling is an interesting one when we talk about currencies, first because of the technical situation, there was so much negativity for sterling and the UK -- where there is also a budget and political changes," he said.

"As long as politicians can show they're acting with fiscal respect, the market takes it as relatively positive for the currency. So, as an alternative, sterling was gaining as well with a weaker euro."

Portfolio Adjustments and Overweight Position

König said Amundi had shifted to a more positive sterling view over the past month and had a slightly overweight position on the pound against other major currencies.

UK Fiscal Policy and Market Implications

Britain's new finance minister John Healey said he will ​put fiscal discipline at the core ‌of his first budget on October 28.

(Reporting by Dhara Ranasinghe; editing by Alun John)