GBP seen weaker in H2 – Danske Bank

Chief Analyst at Danske Bank Jens Sorensen expects the BoE to ease further in next months, opening the door for further weakness in the Sterling.

Key Quotes

“If we are right about the Bank of England today leaving open the possibility of additional easing later this year, this would support our call for more GBP weakness in H2”.

“Importantly, however, our GBP view is primarily based on the economic imbalances in the UK economy and not least the substantial current account deficit relying on foreign funding amid Brexit uncertainties”.

“As such, today’s meeting alone is not material for our fundamental expectations of a weaker GBP”.