Danske Bank: Weak fundamentals weaken the pound

Danske Bank: Weak fundamentals weaken the pound

Analysts at Danske Bank believe that there will be a calmer period in the UK after the farce of the Truss government. Against this backdrop, global influences are likely to have an important impact on the pound. The importance of domestic policy themes in the UK is expected to decline going forward and volatility will continue to recede. The bank still expects fragile risk appetite, overly aggressive BoE market pricing and lower energy prices to continue to weigh negatively on the pound in the near term.