MUFG Bank’s GBP optimism is fading after a solid run since the start of the year.
GBP gains but downside risks
A weaker US Dollar will help support GBP/USD and while higher rates to fight inflation could prove supportive for the Pound, there are risks going forward that this could create concerns over growth.
With UK yields set to ease as the BoE underdelivers current expectations, GBP weakness could be evident versus EUR.
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