Bank of Mitsubishi UFJ analyst Derrick Halpenny said in a report that the pound is facing an indirect blow from weak economic growth in the Eurozone. He said that compared with the ECB, the Bank of England is expected to cut interest rates more carefully, but weak economic growth in the Eurozone may cause the Bank of England to cut interest rates beyond its exchange rate expectations. Compared to the Eurozone, the UK is likely to be less affected by US President-elect Donald Trump's trade tariff plan. Halpani said that if the trade conflict escalates next year, this may curb the depreciation of the pound, but due to the slowdown in the Eurozone and global economic growth, the pound “still has a downside risk.”

Bank of Mitsubishi UFJ analyst Derrick Halpenny said in a report that the pound is facing an indirect blow from weak economic growth in the Eurozone. He said that compared with the ECB, the Bank of England is expected to cut interest rates more carefully, but weak economic growth in the Eurozone may cause the Bank of England to cut interest rates beyond its exchange rate expectations. Compared to the Eurozone, the UK is likely to be less affected by US President-elect Donald Trump's trade tariff plan. Halpani said that if the trade conflict escalates next year, this may curb the depreciation of the pound, but due to the slowdown in the Eurozone and global economic growth, the pound “still has a downside risk.”