As Brexit deal is getting closer, investors’ belief in the UK’s currency is coming back, Bloomberg reports.

Allianz Global Investors, which had taken short position in regards to sterling since referendum in 2016, now switched to a long position. Union Bancaire Privee (UBP) foresees volatility rise and prefers buying pound assuming that it is undervalued.

Pound was losing steam this year as time for UK’s exit from European Union has been approaching. This month mood changed as hopes for Brexit deal next week rose. The currency gained 3% and exceeded level of $1,31.

Allianz bets that pound will grow to $1,35 in short term and to $1,40 within a year. UBP is also optimistic about sterling and forecasts its growth to $1,45 on a deal.

We would like to remind that sterling lost 12% since the referendum.