- Analytics
- News and Tools
- Market News
- GBP/USD: Grim outlook set to undermine the pound – MUFG
GBP/USD: Grim outlook set to undermine the pound – MUFG
The pound weakened against the US dollar in June. But the pound also weakened versus the euro. Economists at MUFG Bank highlight GBP’s downside risks.
Picking a fight with the EU set to undermine confidence further
“The OECD forecast for growth in 2023 was put at zero percent. Consumer confidence hit another record low, retail sales over April and May were weaker than expected while real GDP contracted by 0.3% MoM in April, weaker than expected. Terrible current account data for Q1 is likely to undermine GBP sentiment further. It highlights the vulnerability of GBP to increased risk aversion that we expect over the coming months.”
“Voting legislation through the House of Commons allowing the UK to unilaterally change the Northern Ireland Protocol may be well-timed politically (to deflect from Boris’ other troubles like a record swing against the Tories in a by-election) but will only add to the negative sentiment. Increased conflict with the EU will only raise uncertainty and undermine trade further.”
“The risks for GBP/USD over Q3 is to the downside given GBP tends to perform poorly as financial conditions tighten. Beyond then, even as GBP/USD recovers, GBP will remain weak versus EUR.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
