the pound sterling has recovered somewhat from the heavy sell-offs met with unfunded tax cut proposals from the former Prime Minister Liz Truss in September 2022. In 2023, the Citi economists expect the pair GBP/USD move within a range of 1.23-1.28.
The pound is vulnerable to further bouts of weakness against the dollar
“For the pound to make sustained gains, the UK needs to come up with a long-term sustainable growth strategy. The outlook for 2023 is bleak, with a recession likely, the worst external deficit in the developed world and trade with the EU weighed down by the Brexit.”
“The BoE has an equally difficult task of trying to bring down a high inflation rate without deepening the UK recession and falling house prices. Against this backdrop, we see the sterling vulnerable to further bouts of weakness against to the dollar.”
“We expect a mid-range of 1.23-1.28 until the longer-term outlook shows improvement.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
