GBP should have a tough start of the year – TDS

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

Economists at TD Securities maintain a bearish view on the Pound and expect the British currency to struggle at the start of 2023.

“GBP should have a tough start of the year, reflecting a mix of external and local factors.”

“On the global side, the USD outlook will feature prominently in the gyrations of GBP. We anticipate further terminal rate divergence between the Fed/BoE, especially as UK growth looks vulnerable to housing risks.”

“Fiscal prudence comes at a cost, likely undermining UK growth relative to the rest of the G10. In turn, low real rates and weak growth won’t capture the capital flows needed to plug the current account balance. GBP remains the shock absorber.”

[/s2If]
Join Our Telegram Group