The EUR/GBP exchange rate is rising in a strong short-term uptrend which is expected to continue.
The Euro to Pound exchange rate is rising, mainly because of the Euro’s pro-risk averse properties, but also due to increased Brexit hype pressurizing the Pound.
The Pound is going down but the Euro is going even lower, says Bank of America Merrill Lynch’s Head of FX Strategy David Woo.
The Euro’s strength is likely to be a short-lived affair says analyst.
An improved outlook for the economy is unlikely to offset weakness caused by extended Brexit insecurity.
With a plethora of various elections and the rise of the political right the outlook for Europe is very uncertain and this is rubbing off on the Euro; the Pound meanwhile provides a close repository for flows from a crisis-hit Europe, conclude SEB Bank.
The currency markets were tipped on their head following the crowning of Donald Trump as the new president of the USA, with a consequence that the Pound is set to rise in most pairs and the Euro to fall because of increasing political risk.
EUR/GBP has been in a strong uptrend since breaking out above the 0.7490 range highs in January.