GBP/USD: There is limited possibility for appreciation – NBF

GBP/USD flirted with all-time lows on September 1st, ending four-tenths away from the pandemic trough. Economists at the National Bank of Canada expect the pair to remain under pressure.

Turmoil on all fronts

“The island nation is composing with a multitude of challenges ranging from inflation to political change. The economic outlook has deteriorated and will pose a navigational challenge for the Bank of England.”

“As the country appears headed for a recession, there is limited possibility for appreciation unless the trade-weighted USD descends from its lofty levels.”