📝 GBP Recent Gains Unlikely to Last Given U.K. Risks: Commerzbank

Weak U.K. economic growth and Brexit risks most likely to pressure sterling and limit its recent gains. It is feared that potential expansionary fiscal policy under new U.K. Conservative Party leader Liz Truss will significantly fuel inflation and government debt. Sterling might not find further demand if the BoE raised interest rates more aggressively to fight inflation, as that could deepen a recession. There's also the risk of a U.K.-EU trade war, noting speculation that Truss could suspend the Northern Ireland protocol- Commerzbank