The recent weakness of the euro has once again weighed on the EUR/GBP. ING economists expect the cross falls towards the level of 0.82.
EUR/GBP can probably continue to bounce around the 0.83-0.84 range
“We have a target in the coming months around 0.82, though that may be the extent of the GBP’s move this year. The challenge for the GBP will be if and when market expectations for the Bank of England rate adjust closer to 1.00/1.25% (our view) vs. current 2% valuation. That adjustment will probably be in the second half of 2022.”
“For today, you have to be careful with a Speech by BoE Chief Economist Huw Pill. Given the already high inflation that will continue to rise, maybe you don’t want to comment on rates today. Therefore, EUR/GBP can probably continue to bounce around the 0.83-0.84 range.”
Source: Fx Street
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