Analysts at Schneider Foreign Exchange claim that the British currency may lose to the greenback as its rate depends on a very dangerous mix of the fundamentals.

The specialists expect pound to fall to $1.55 by the end of the first quarter and hit $1.40 by the end of June.

According to Schneider, the Bank of England will make a lot of efforts trying to stem the medium-term inflation pressures and support weaker-than-expected growth. Real interest rates in the UK are going to be low or even negative so there will be little yield support for sterling.

The strategists say that their forecast’s going to confirm unless British economy shows strong performance in the first quarter.



Chart. Daily GBP/USD

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