eFXdata reports that Credit Agricole Research discusses GBP outlook in light of revising down its forecasts over the near-term time horizon.

"The BoE has moved closer to cutting rates as the UK economic outlook deteriorated and with the Brexit-related political uncertainty expected to persist. Indeed, Crédit Agricole CIB's economist now expects the MPC to cut rates on 30 January and this could keep the headwinds for the GBP vs the EUR and the USD in place for now," CACIB notes.

"We revise our GBP forecasts to the downside and now see GBP/USD at 1.30 (from 1.33) and EUR/GBP at 0.86 (from 0.84) in Q120," CACIB adds.