Today it is expected to mark an extraordinary day for Germany. The Bundestag is ready to approve a constitutional amendment that will allow you to soften the debt restrictions under your debt brake. This should allow a higher defense expense, in addition to preparing the land for an infrastructure fund financed with debt of 500,000 million euros and allowing German states to have modest budgetary deficits, says Rabobank’s currency analyst Jane Foley.
The BOE could cut three more times this year in total
“However, the news is probably already in the price. Since March 4, the euro has surpassed its peers of the G10, with the exception of the Norwegian crown and the Swedish crown, while the Dax has risen more than 17% so far this year. In the United Kingdom, budgetary news is also expected today, although they will be of the type of adjustment.”
“The news of the United Kingdom can help the EUR/GBP stay close to the current levels and below the maximum of March around 0.8495. However, the hopes of a better perspective of growth in the euro zone have altered the dynamics for the EUR/GBP. Our end of the year forecast for the EUR/GBP is 0.83, assuming that the growth of the United Kingdom can recover over the year and Most recent indications of the United Kingdom have not been encouraging. ”
“In Rabobank’s opinion, the BOE could cut three times more this year in total. Unless this is matched by a better growth perspective, our expectation of a modest downward movement in the EUR/GBP this year could be difficult to achieve.”
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.
