Sterling inches higher as IMF downgrades UK growth

Sterling edged higher on Monday despite the IMF lowering its UK GDP growth forecast from 2% to 1.7% in 2017 due to weaker than expected economic activity. I believe that the appreciation observed in the GBPUSD on Monday has nothing to do with a change of bias towards the Sterling, but rather the ongoing sour sentiment towards the Dollar. The market expectations still appear to be short on the British pound, especially considering how the deteriorating economic fundamentals at homes, political risk and Brexit uncertainty continue to weigh