Sterling is likely to struggle to record further gains – Commerzbank

Economists at Commerzbank expect the British Pound (GBP) to weaken medium term as the Bank of England will continue to act hesitantly.

The BoE remains too hesitant

We stick to our view that Sterling is likely to struggle to record further gains.

The BoE remains too hesitant, and concerns about a hard landing for the economy are going to intensify, thus limiting Sterling’s upside potential. 

We continue to see a weakening GBP medium term as we assume that the market’s rate expectations are excessive. Hence, we see potential for disappointment.