The Pound was the G-10 currency with the worst performance in September. The economists of MUFG Bank analyze the outlook for the GBP.
GBP gains will continue to reverse
We suspect the Bank of England has already gone too far with tightening and see the potential for rates to be eased relative to other major developed economies.
We see GBP underperforming from here and in circumstances of dollar weakness, the weakness will be more evident against the EUR.
EUR/GBP – Q4 at 0.860, Q1 2024 at 0.8750, Q2 2024 0.8800, Q3 2024 at 0.8850.
GBP/USD – Q4 2023 at 1.2150, Q1 2024 at 1.2570, Q2 2024 at 1.2730, Q3 2024 at 1.2660.
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.
