Mitsubishi UFJ: The pound faces the potential impact of eurozone economic rise weakness

On November 26, Jinshi Data News, Mitsubishi UFJ Bank analyst Derek Halpane said in a report that the pound faces an indirect blow from the weak rise in the euro area economy. He said that compared with the European Central Bank, the Bank of England is expected to lower interest rates more cautiously, but the weak rise in the euro area's economy may cause the Bank of England's interest rate cut to exceed its expected exchange rate. Compared with the euro area, the impact of the trade tariff plan proposed by US President-elect Donald Trump on the UK may be smaller. Halpane said that if the trade conflict escalates next year, it may suppress the depreciation of the pound, but due to the slowdown in the euro area and the global economy, the pound still has downside risks.