GBP – Sterling rallied to a six week high on Tuesday on improved risk sentiment as Rishi Sunak became Britain’s latest prime minister.
Nevertheless, risks for GBP remain tilted to the downside, as the UK’s bleak economic outlook is ultimately likely to dominate the currency’s long term performance.
Indeed, Convera succinctly argues: “Beyond a brief honeymoon phase rally, I think the daunting road ahead for the UK economy is likely to cap sterling gains.”
Nevertheless, risks for GBP remain tilted to the downside, as the UK’s bleak economic outlook is ultimately likely to dominate the currency’s long term performance.
Indeed, Convera succinctly argues: “Beyond a brief honeymoon phase rally, I think the daunting road ahead for the UK economy is likely to cap sterling gains.”