EUR/GBP declines to and below 0.8300 – Danske Bank
|EUR/GBP declined close to the 0.8300 mark during yesterday's session. GBP FX is in for an eventful week packed with macro data releases , Danske Bank's FX analyst Mohamad Al-Saraf reports.
EUR/GBP to trade lower in weeks to come
"This morning, we get the labour market report for December/January. Consensus expects a pick up in wage growth and unemployment to rise to 4.5% from 4.4%. Payrolls have come in to the weak side the past months and vacancies have edged lower with surveys indicating a further weakening in labour demand."
"We think the BoE is set for the next cut in May. We also published a note on how the notion of US tariffs affects the UK and by extension GBP. Overall, the UK looks better insulated against possible US tariffs on UK goods than the euro area."
"The UK mainly exports services to the US, it does not have a big US-trade deficit and US President Trump has a better relationship with UK PM Starmer. We think this favours GBP vs EUR, supporting our strategically bearish view on EUR/GBP."
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