A report from Ulster Bank has forecast that euro zone interest rates will drop to 1.5% this year, while a weaker euro could provide some relief to exporters.
Economist Simon Barry says the US economy could show signs of stabilising later in the year, helped by new President Obama's financial package, lower oil prices and a 'do-whatever-it-takes' mentality at the Federal Reserve.
But he says a greater focus on weakness in the euro zone economy will boost sterling against the euro. The economist is targeting an exchange of 80p by the end of the year, with the euro also weakening to $1.15 against the US dollar in the months ahead.
Mr Barry has also urged companies with long-term debt to consider hedging their interest rates at current levels, which are near record lows. He says long-term borrowing costs have fallen sharply in line with huge falls in official interest rates.
