EUR/GBP seen at 0.92 on a one-month view – Rabobank
|The euro has pulled back against the pound this week to put an end to the three-week rally seen earlier in June. The Rabobank FX Analysis Team, however, remains bullish on the euro expecting the uptrend to resume, aiming to 0.9200.
Key quotes
“The long-anticipated re-opening of England’s hospitality sector and other service-related businesses on July 4 has been accompanied by a somber warning from PM Johnson that the country is ‘not out of the woods yet’.”
“The re-opening should help staunch the wounds of hundreds of businesses. However, the results of several recently published surveys on the UK economy provide grim reading. When this backdrop is layered on top of Brexit uncertainty and the ongoing discussion about negative interest rates in the UK it is little surprise that the pound has been the worst-performing G10 currency over the past month.”
“Looking ahead, both economic and Brexit discussions are likely to feature heavily in the performance of the pound. The longer investors have to wait for signs of compromise from Brexit negotiators, the more chance there is that GBP will slip lower. In the absence of solid progress on a trade deal, we expect EUR/GBP to edge towards 0.92 on a 1-month view.“
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.