The fate of Sterling in 2023 doesn’t rest entirely in the hands of the Bank of England.

Despite further interest rate hikes being made by the Central Bank, Sterling is expected to fall as the economy slips into a recession and possibly sees stagflation as the rate of inflation levels off but fails to fall in any meaningful way.

There have been very few benefits that have been apparent from the country’s decision to leave the European Union, with small and medium businesses still tied up in the red tape that has, if anything, been worsened by the mish mash of agreements that place them at a severe disadvantage to their EU domiciled competitors.

That is unlikely to change much in the coming year, as the Government remains unclear about how it handles the flow of goods into Northern Ireland.

One of the reasons inflation has continued to rise is the continued lack of workers. This is partly due to Brexit as EU nationals who used to work in agriculture and leisure have departed for their home countries, but also due to an exodus of employees from the workforce who have decided to take up offers of early retirement.

Beyond Currency Market Commentary:

Aims to provide deep insights into the political and economic events worldwide that can cause currencies to change and how this can affect your FX Exposure.