In the opinion of HSBC economists, Both internal and external factors point to future sterling weakness.
Cyclical history unlikely to provide much support for GBP
As markets will slowly begin to see that the next move in UK rates will be down, not up, we think a change in rate expectations could drag the currency down.
The cyclical story is also unlikely to provide much support for the GBP, as short-term cyclical indicators such as PMIs have started to worsen again.
Finally, unless and until there is a rebound in risk appetite, supported by an improving global outlook, difficult domestic forces are likely to continue weighing on the GBP.
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.
