GBP remains a very vulnerable currency
“The UK is burdened with a record current account deficit/GDP ratio meaning that GBP is vulnerable to a downward adjustment if foreign investors are reluctant to fund the deficit.”
“UK’s fundamentals are currently characterised by high levels of debt and debt issuance, low growth/recession, high inflation and weak productivity. It is hardly an attractive backdrop for investors, which explains why GBP remains a very vulnerable currency.”
“We now see EUR/GBP trending higher to 0.92 by the middle of next year.”
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