Nomura Forecast: UK Stagflation Fears to Damage Sterling, GBP/AUD Heading Below 2.00

  • The Pound to Australian dollar (GBP/AUD) exchange rate dipped to 1-month lows below 2.05 last week before a rally to 2.0670. Nomura considers that the current Pound valuations will not be sustainable given UK stagflation fears and a Bank of England (BoE) pivot.