EUR/GBP seen at 0.92 on a one-month view – Rabobank
|On a one-month view, EUR/GBP has crept up by 1.8% and broken well above the psychologically important 0.90 level. Negative internal developments such as the prospect of a negative interest rate or a current account deficit can lift the pair to 0.92, per Rabobank.
Key quotes
“The fact that the pound is the worst performing G10 currency on a one-month view highlights the extent of negative domestic pressures. We expect EUR/GBP to head on towards 0.92 on a one-to-three month view”
“The combination of negative rates and a current account deficit could leave the pound particularly exposed to downside pressure. Although it is not our central view, this scenario could push EUR/GBP back to the 1.00 area.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.