GBP underperformance to persist amid poor UK economic outlook – MUFG
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The Autumn Statement yesterday from Chancellor Hunt provided no fiscal surprises with a grim outlook confirmed. Therefore, economists at MUFG Bank expect the British Pound to remain under downside pressure.
“The Autumn Statement again highlights the poor outlook and downside risks for the Pound.”
“The record current account deficit is forecast to improve (the OBR assumes GBP/USD at 1.1500 for the forecast period) but will remain elevated at 5.8% this fiscal year and 5.2% next fiscal year.”
“Expect GBP underperformance to persist.”
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