{"id":16636,"date":"2025-09-28T06:07:45","date_gmt":"2025-09-28T06:07:45","guid":{"rendered":"https:\/\/lotayamedia.xyz\/?p=16636"},"modified":"2025-09-28T06:07:45","modified_gmt":"2025-09-28T06:07:45","slug":"pound-sterling-under-pressure-mufg-predicts-gbp-eur-slide-to-1-13-amid-fiscal-concerns-3","status":"publish","type":"post","link":"https:\/\/lotayamedia.xyz\/?p=16636","title":{"rendered":"Pound Sterling Under Pressure: MUFG Predicts GBP\/EUR Slide to 1.13 Amid Fiscal Concerns"},"content":{"rendered":"<p><img class=\"Sirv\" data-src=\"https:\/\/chartakelay.sirv.com\/Images\/28%209\/a.jpg\" alt=\"\"><br \/>\n<script src=\"https:\/\/scripts.sirv.com\/sirvjs\/v3\/sirv.js\"><\/script><\/p>\n<p><a href=\"https:\/\/lotayamedia.xyz\/?page_id=16634\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/lotayamedia.xyz\/wp-content\/uploads\/2025\/09\/6666-6-1-3-768x960-11.jpg\" alt=\"\" width=\"768\" height=\"960\" class=\"alignnone size-full wp-image-16603\" srcset=\"https:\/\/lotayamedia.xyz\/wp-content\/uploads\/2025\/09\/6666-6-1-3-768x960-11.jpg 768w, https:\/\/lotayamedia.xyz\/wp-content\/uploads\/2025\/09\/6666-6-1-3-768x960-11-240x300.jpg 240w\" sizes=\"auto, (max-width: 768px) 100vw, 768px\" \/><\/a><\/p>\n<p>The Pound Sterling (GBP) faced renewed selling pressure this week, with the GBP\/EUR exchange rate tumbling to three-month lows near 1.1440. Analysts at MUFG remain bearish on the UK currency, maintaining their forecast of a further decline to 1.13 in the coming months.<\/p>\n<p>ECB Rate Hold Strengthens the Euro<br \/>\nThe European Central Bank (ECB) kept interest rates steady at 2.00% in its latest meeting, with sources indicating that rates are likely to remain unchanged in September (Reuters). This shift in expectations has bolstered the Euro (EUR), adding to Sterling\u2019s struggles.<\/p>\n<p>Bank of England Rate Cut Expectations Weigh on GBP<br \/>\nMarkets are pricing in a near-certain interest rate cut by the Bank of England (BoE) in early August, a move that MUFG and other major investment banks fully anticipate (Bloomberg. The latest UK PMI data revealed:<\/p>\n<p>Slowing services-sector growth<\/p>\n<p>Further job losses<\/p>\n<p>Rising cost pressures<\/p>\n<p>With labor market weakness persisting, MUFG expects multiple BoE rate cuts this year, eroding the Pound\u2019s yield advantage over the Euro.<\/p>\n<p>Inflation and Fiscal Risks Compound Sterling\u2019s Woes<br \/>\nDespite signs of sticky inflation, the BoE\u2019s dovish tilt could further damage GBP sentiment. Additionally, MUFG highlights underlying fiscal vulnerabilities, with potential tax hikes in the Autumn Budget likely to suppress consumer spending and business investment (Financial Times.<\/p>\n<p>Key Takeaways for GBP\/EUR Outlook<br \/>\nBearish GBP forecast (1.13 target) as BoE easing cycle begins<\/p>\n<p>ECB\u2019s steady stance supports EUR<\/p>\n<p>UK fiscal concerns add downward pressure<\/p>\n<p>Persistent inflation may not save Sterling if rate cuts proceed<\/p>\n<p>For real-time FX updates, follow @fxstreetnews or track live rates via Investing.com.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Pound Sterling (GBP) faced renewed selling pressure this week, with the GBP\/EUR exchange rate tumbling to three-month lows near &#8230;<\/p>\n","protected":false},"author":1,"featured_media":16632,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rank_math_title":"","rank_math_description":"","rank_math_focus_keyword":"","rank_math_keywords":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-16636","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=\/wp\/v2\/posts\/16636","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16636"}],"version-history":[{"count":1,"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=\/wp\/v2\/posts\/16636\/revisions"}],"predecessor-version":[{"id":16637,"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=\/wp\/v2\/posts\/16636\/revisions\/16637"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=\/wp\/v2\/media\/16632"}],"wp:attachment":[{"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16636"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16636"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16636"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}