In the opinion of analysts Danske Bankthe EUR/GBP pair will move around the 0.88 area.
EUR/GBP caught between opposing forces
“In the very short term, changes in systemic risk fears will continue to be the key driver of the cross.”
“Longer term, EUR/GBP is, in our view, caught between opposing forces. On the one hand, we expect relative rates to act as a clear tailwind, while slowing global growth and relative attractiveness of UK assets act as a headwind. At the moment, we do not see relative growth prospects or the global investment environment creating a significant divergence between the euro and sterling.”
“We expect the cross to remain range bound around 0.87-0.88“.
Source: Fx Street
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