Sterling to underperform amid global growth fears – MUFG

The pound has not been significantly impacted so far by the heightened state of political uncertainty in the UK. Instead, economists at MUFG Bank expect GBP to move downward due to recession woes.

Heightened political uncertainty unlikely to be the main driver 

“The heightened political uncertainty will continue to hang over pound performance in the near-term but is unlikely to be the main driver.”

“The pound should continue to underperform while global growth fears are mainly driving price action in the FX market.”  

See – British pound: Forecasts from seven major banks, downside risks to persist