Deutsche Bank: The pound looks weaker than the euro

2025-01-14 16:55:29
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ChainCatcher news, the GBP/USD exchange rate fell to a two-year low on Monday, while the exchange rate against the euro hit a new low in 10 weeks, after which the pound rose. However, Deutsche Bank analyst Michael Pfister stated in a report that the pound remains vulnerable to rising bond yields and a weak economy, and is more susceptible to these factors than the euro.

He noted that the pound is no longer one of the world's major reserve currencies, so if UK government bonds depreciate, investors "would be more willing to shift their reserves to other currencies until the turmoil ends." Pfister also mentioned that the Bank of England has limited room to cut interest rates, which means that economic growth in the UK may struggle to recover, and the pound will be affected as a result. (Jin Ten)

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