- Analytics
- News and Tools
- Market News
- EUR/GBP to lurch higher to 0.85 on a six-month view – Rabobank
EUR/GBP to lurch higher to 0.85 on a six-month view – Rabobank
The money market still appears aggressively priced for the Bank of England (BoE) hiking interest rates in the coming months. Consequently, economists at Rabobank expect the EUR/GBP to edge higher towards the 0.85 level over the next six months.
GBP vulnerable against both the USD and the EUR
“The market has re-considered the outlook for UK rates in the wake of the BoE’s dovish tightening in March. However, in our view, the market may still have too many rate hikes priced in. This leaves GBP vulnerable against both the USD and the EUR.”
“Some market commentators have started to speculate that the BoE may think twice about hiking interest rates beyond May. Our house view is that the tightening cycle could persist a little longer to ensure that inflation expectations remain well-anchored.”
“Assuming that gas continues to flow into the Eurozone this year and that stagflation is avoided on the other side of the Channel, we expect EUR/GBP to tick higher to 0.85 on a six-month view.”
© 2000-2025. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
