EUR/GBP fails again at 0.8455 and returns below 0.8400

• Euro falls below 0.8400 after another rejection from 0.8455.
• Recoveries lost ground after the post-BoE pullback.
• EUR/GBP seen at 0.8100 by the end of the year – Nordea.

The strong rally of the euro witnessed on Thursday, after the moderate BoE rally, has been rejected at 0.8455 for the second time this week. Euro loses ground on Friday returning to levels below 0.8400.

Euro Bulls Fade on Renewed Ukraine Concerns

The common currency is trading lower across the board on Friday, with risk sentiment fading as hopes for a Russia-Ukraine peace deal begin to fade in the absence of substantial progress.

However, the pair is holding on to weekly gains and remains on track for a second positive week in a row, after bouncing from six-year lows at 0.8200 in early March.

The euro appreciated sharply on Thursday, and the pound sterling depreciated broadly following the Bank of England’s monetary policy decision. The BoE met expectations with a 25 basis point hike, although the dovish tone of the banks’ statement hit cable demand.

EUR/GBP to crash to 0.81 by the end of the year – Nordea

In the medium term, Nordea Bank’s currency analysts expect the euro to fall further in the coming months, to reach 0.81 by the end of the year: “The BoE rose for the third time in a row and there will be more increases later this year . Therefore, we are in favor of the British pound strengthening against the euro and probably already during the second quarter if we have a pause or a durable solution between Ukraine and Russia (…) “We expect that the EUR/GBP will move towards 0.81 by the end of the year. ”

Technical levels