GBP to weaken further in the months ahead and through 2024 – HSBC

Both domestic and external factors point to a weaker GBP ahead, in the view of economists at HSBC.

The cyclical story is unlikely to provide much support to the GBP

As markets will slowly start to see the next move in UK rates being down, not up, we think that a shift in rate expectations could drag the currency. 

The cyclical story is also unlikely to provide much support to the GBP, as short-term cyclical indicators, like PMIs, have started to turn for the worse again. 

Finally, unless and until there is a surge in risk appetite, supported by an improving global outlook, the challenging domestic forces will probably continue to weigh on the GBP.