GBP – Sterling edged lower on Tuesday and was set for its biggest monthly fall against USD in 16 months as the UK’s energy crisis renewed recession fears in Britain.
Commenting on GBP, Commerzbank explains that “the continued rise in gas prices entails the risk that the recession will be more pronounced and longer than previously expected. Strikes are already regularly paralyzing parts of public life due to the significant decline in real wages and the resulting loss of purchasing power. “The bank adds that other headwinds weighing on sterling included the shortage of labour because of Brexit, the leadership contest in the governing Conservative Party and the resulting uncertainties around the next prime minister’s fiscal policy on economic challenges.
Commenting on GBP, Commerzbank explains that “the continued rise in gas prices entails the risk that the recession will be more pronounced and longer than previously expected. Strikes are already regularly paralyzing parts of public life due to the significant decline in real wages and the resulting loss of purchasing power. “The bank adds that other headwinds weighing on sterling included the shortage of labour because of Brexit, the leadership contest in the governing Conservative Party and the resulting uncertainties around the next prime minister’s fiscal policy on economic challenges.