Image © BruceG1001. Sourced: Flickr. Reproduced under CC licensing.
Foreign exchange analysts at the world’s largest primary dealer of foreign exchange say the British Pound will retreat towards 2022’s lows over the coming months.
Citibank’s latest currency analysis shows the Dollar is likely to spike back to its recent highs again and the Pound is at unsustainable elevations owing to expectations for the UK economy to materially underperform that of the Eurozone and U.S. in 2023.
Ross Hammond, FX Counsellor at Citi’s Wealth Management division, says although the tide will turn against the Dollar, it will likely be predicated by a final peak.
“Citi prefers to express this through higher Beta FX currencies, and those more so exposed to housing sensitivity and interest rate risk, such as GBP & CAD,” says Hammond.
Vasileios Gkionakis now leads research on the Pound in his role as head of European FX strategy at Citi, and his…