HSBC: GBP Needs To Fall Further With a current Account Deficit Comparable To Some Small EM Economies

The primary loser from Brexit is sterling, and it doesn’t look as if the currency is set to recover its losses anytime soon. With a current account deficit comparable to the size of some small emerging market economies, a political outlook plagued with uncertainty, a dovish central bank and a potential recession on the horizon, sterling is going to be under pressure for the foreseeable future. UK Corporate Spending Collapses After Brexit Analysts at HSBC believe that a weaker pound is almost a requirement’ for the UK. Specifically, analysts believe that GBP must weaken further to help Britain’s rebalancing progress…