The EUR/GBP pair has been relatively stable this year despite the uptick in volatility in other currencies. The Rabobank economists expect the pair to rise to 0.89 six months ahead.
EUR/USD could drop below parity again next year if gas prices soar again
“Despite the possibility of further BoE tightening vis-à-vis the ECB, the pound is vulnerable against the euro given weak business confidence, investment and growth in the UK. Pound especially susceptible if the political drama escalates again next year.”
“EUR/USD could drop below parity again next year if gas prices spike again. This, however, would be no consolation for GBP.”
“We expect a long run to the top for the dollar, with room for potentially sizeable declines in both EUR/USD and GBP/USD next year. Election-wise, we continue to expect a slow rise in EUR/GBP up to 0.89 six months ahead”.
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.
