Analysts at Rabobank still see choppy range trading for the EUR/GBP within the weeks ahead. they keep a forecast that the currency pair could still push to 0.84 by year-end.
“The May 6 publication of the BoE’s Monetary Policy Review should add a touch more flavor to forecasts regarding the outlook for UK growth this year. Since England’s partial winding back of Covid restrictions on April 12, anecdotal evidence has been adding to plug expectations that UK growth this year will outstrip previous forecasts.”
“While there’s scope for optimism on the economic front, the pound is confronted by a round of headlines regarding sleaze in government circles. To date, GBP has mostly shrugged these reports off, largely because the united kingdom electorate is cognizant of the PMs but squeaky clean reputation. That said, the present accusations regarding ‘curtain gate are unlikely to disperse as quickly because the PM would really like. this suggests that politics still has the capacity to knock confidence within the pound, even as the electorate prepares for the May 6 local English, Mayoral and Welsh and Scottish parliamentary elections.”
“On balance we expect choppy trading within the coming months with EUR/GBP likely edging lower to the 0.84 area by the top of the year.”
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