In the view of Kit Juckes, Chief Global FX Strategist at Société Générale, GBP/USD may trade in a low range for now, but King Chares III is set to see the British pound value falling.

Next 10% move in USD/JPY more likely to be down than up

“The aggressive fiscal reactions to higher energy prices support a view that while we may not have seen the dollar’s peak, it isn’t very far away.”

“There’s a lot of bad news embedded in current FX levels and a period of EUR/USD and GBP/USD trading in low ranges is more likely than fresh 10% fall from here. It’s now much more likely the next 10% move in USD/JPY is down than up, too.”

“The long run sterling outlook is, however, a different story. There’s a strong chance that King Charles III will be the first British monarch to pay more than a pound for a dollar, or more than a pound for a euro or both. Neither is likely this year, but sterling’s post-GFC downtrend won’t end until there’s a seismic change in the direction of economic policy and the economy.”