Ulrich Leuchtmann, Head of FX and Commodity Research at Commerzbank, expect Sterling to remain under pressure following bleak prospects for the UK economy.

IMF predicts recession in the UK – and only in the UK

“The IMF assumes that this year the UK will be the only major economy to have to go through a recession. And the IMF also expects that no major economy will record slower growth than the UK even next year. That is not good news for Sterling.”

“A scenario in which Sterling has to be valued weaker has become at least marginally more likely. And that is putting pressure on Sterling already now.”

“I wonder: How are these concerns going to disappear short-term? And that is why I consider the GBP weakness to be sustainable for now.”