Natixis is awaiting fall of the pound to 1.18 in the coming months

Natixis publish its weekly review of the currencies of the G-10, draws attention to the fact that uncertainty about Brekzit will likely have a negative impact on economic growth in the UK, which will keep sterling under selling pressure.

Although GDP growth in the UK remains stable, uncertainty about the upcoming negotiations with the European Union is still very high, especially considering the rise of euroscepticism and the coincidence in time with the negotiation of a number of key elections.

For these reasons, analysts of the bank are cautious about prospects for economic growth in the UK in the medium term, recognizing the risk of stagflation. In the near time should be monitored CPI (looking to rise by 1.9% in January) and employment data. The bank remained wary of the pound, predicting a decline in GBP/USD towards 1.18 over the coming months. They expect EUR/GBP to vary between 0.84 and 0.86 in the near future.