GBP/USD could tumble to 1.10 over coming months – ING

It has been a tough summer for the pound. Economists at ING believe that the GBP/USD pair is at risk of falling to 1.10 over coming months.

GBP looks likely to stay pressured as Europe and the UK enter recession

“The sell-off in Gilts suggests international investors do not like either: i) the BoE’s plans to start selling Gilts or ii) the new PM’s, Liz Truss, likely plan to deliver large, unfunded government support.”

“As a growth sensitive currency, sterling looks likely to stay pressured as Europe and the UK enter recession.” 

“1.10 is the risk for cable over coming months.”