The pound ended the year down 11.6% against the dollar and 4.2% against the euro. The Rabobank economists They expect UK fundamentals to remain sour in the coming months.
Weak investment growth and low productivity levels
“For the GBP outlook to advance significantly it is likely that investment and productivity growth will need to show signs of improvement. This may require more visible leadership from Prime Minister Sunak, although divisions in his own party are likely They will be difficult to manage.”
“Furthermore, while a viable solution on the Northern Ireland protocol could bring new clarity on the UK’s relationship with Europe, this remains a deeply challenging issue.”
“We continue to view the pound as vulnerable and expect EUR/GBP to move closer to 0.90 six to nine months from now.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
