Natixis: The pound is being impacted by the rise in the difference between the British and American economies

According to a report by Kit Juckes, a forex strategist at BNP Paribas, the recent decline in the GBP/USD is due to the worsening economic growth expectations in the UK compared to the US. He stated that the economic prospects in the US have strengthened this year, resulting in a widening gap between the US and the UK, which has weakened the GBP/USD exchange rate. ‘Europe, including the UK, does not really want a strong economy, but the US does,’ he added. This is why US politicians are less picky about fiscal rules, environmental regulations, financial industry supervision, and the risks in the artificial intelligence industry. The UK has tightened regulations more strictly than the US, resulting in a strong US economy and a weak pound.