The Pound has proved remarkably resilient in the face of Brexit uncertainties as the strengthening economy has helped offset fears about Europe, is this set to continue?
The Pound weakened versus the Euro after the Bank of England (BOE) downgraded their forecasts for growth and this trend is expected to continue, say some analysts.
EUR/GBP is falling before tomorrow’s big event - “Super Thursday” - when the Bank of England (BOE) publish both the minutes from its meeting and its quarterly inflation report.
The EUR/GBP exchange rate has been consolidating within a range since November 2016, however, the next move is likely to probe lower according to analysts at J.P Morgan.
Sterling traders should keep hold of their bullish bets despite the currency going through the eye of the storm, advises head of strategy Hans Redeker at investment bank Morgan Stanley.
Strategists at Credit Suisse have recommended buying the Euro and selling Pound Sterling in the short-term in anticipation of further politically-inspired weakness in the latter.
The impact of a loss of access to the EU for the UK services sector will put the country's current account deficit under increased pressuer, and the Pound will have to respond accordingly.
EUR/GBP is at the start of a downtrend, according to Forex.com’s market analyst Fawad Razakzada, and it will probably remain in a bearish mode for the foreseeable future.
Recent figures from the Bank of England (BOE) showed a sharp decline in Gilt purchases by foreign investors in December, which was probably a function of the stronger Pound.
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.