FXStreet reports that economists at HSBC continue to see the GBP underperforming its G10 peers.

“The emergence of a new, potentially more virulent form of COVID-19 in the UK has had a number of important consequences. Domestically, greater restrictions have already been imposed on much of the country and could potentially last longer than previously envisaged.”

“While political fudges such as a provisional deal with ex-post ratification are possible, market participants will no doubt be acutely aware of the risk of heading to a ‘no-deal’ scenario by accident. In such a ‘no-deal’ world, we would expect GBP/USD to be significantly lower, but the broad scale of USD’s recent weakness may limit some of that”

“We continue to expect the GBP to underperform in a G10 context, and think the GBP will barely make gains even against a broadly soft USD in the months ahead, against the backdrop of an improving global economy.”