ANZ Research discusses GBP outlook and sees a scope for gains on the crosses especially against the EUR.
"In sympathy with the euro, sterling has fallen against the dollar since the Ukraine conflict started, despite the UK being much less reliant on Russian energy. The UK’s geographical proximity to the uncertainty overhanging Europe imply sterling will continue to be influenced by the path of the conflict. However, in the crosses, the prospects for sterling are brighter...On the positive side, the high weight of services in the economy will help to insulate it from energy-related manufacturing fragility; demand for labour is very strong and business and government investment are rising," ANZ notes.
"Our forecasts predict the UK will outperform many other major economies this year. Against the euro, we anticipate further modest gains in coming months," ANZ adds.