From Yahoo Finance: 2025-03-25 08:39:00

Big banks are bearish on the pound ahead of the UK fiscal plan announcement, citing potential spending cuts and weaker growth forecasts. JPMorgan and BBVA recommend buying the euro and selling sterling, predicting the pound could drop to 85 pence per euro by next quarter.

UK Chancellor is expected to announce spending cuts and increased borrowing, potentially leading to further interest rate cuts by the Bank of England. Analysts predict a weaker pound as a result. The pound is already down over 1% against the euro this month.

Concerns over UK fiscal health and potential US tariffs could put pressure on the pound. Analysts warn that tariffs could weaken the UK economy, leading to more interest rate cuts by the Bank of England. Tariffs could also impact UK exports and demand from Europe.



Read more at Yahoo Finance: Banks Sour on UK Currency Over Economic Risks From Spending Cuts