GBP/USD: Fundamental outlook continues to favour further sterling weakness – MUFG GBPUSD BOE UnitedKingdom Banks
se for a weaker GBP? In the view of economists at MUFG Bank, GBP weakness would be reinforced if the BoE signals that rate hikes could be paused sooner in response to weaker growth. are signalling that the GBP is now heavily oversold against the USD in the near-term which increases the likelihood of a temporary relief rally.”
“We expect the BoE to maintain a more cautious outlook over the need for further tightening as it finely balances upside risks to inflation against downside risks to growth when setting policy. GBP weakness would be reinforced if the“The GBP could face further selling pressure following local elections scheduled later this week on 5th May.
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