Rabobank analysts share their opinion on the short-term outlook for the British Pound against the Euro and the US Dollar.
EUR/GBP will fall to 0.84 in the second half of 2024
“Our long-standing view is that EUR/GBP could break below the 0.85 level this year. This view is based on the expectation of a slower start to BoE rate cuts. Opinion polls suggest that a Labor government will enter Downing St after the election. Although the shadow cabinet has kept its cards close to its chest on policy details, Starmer's leadership has made efforts to attract the business sector. In addition, the poor state of public finances leaves. little room for maneuver for the new Chancellor. The latter means that the elections could be a reassuringly boring event for the markets.”
“The coming weeks and months could bring more geopolitical-induced volatility for asset prices and, in particular, for the safe-haven USD. This risk, combined with the resilience of the US economy, suggests a strong likelihood of further declines in the value of GBP/USD. EUR/GBP, however, should be less affected. We still expect EUR/GBP to fall to the 0.84 level in the second half of this year. level of 0.8530 EUR/GBP offers short-term support.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
