BNP Paribas Backs Resurgent Pound Amid “Very Cheap” Valuation

The pound sterling surged nearly 5% against the euro in November, its highest monthly rise against the combined currency since 2009. It also has held firm against a surging dollar, while major world currencies have slid since Republican Donald Trump’s victory in the U.S. presidential race.

The embattled British currency is clearly enjoying its best period since the Brexit vote last summer weakened it in October to a 30-year low against the American currency. So, is it time to back the pound?

BNP Paribas thinks so. At current levels of 1.2485 dollars for a pound, it seems “very cheap,” the French bank said.

One valuation measure it has used is its own...