The EUR/GBP pair is rising after breaking out of a triangle formation; it may well reach the same level as the 0.8627 July highs.
The British Pound is a Sell ahead of the Bank of England’s Super Thursday event say JP Morgan noting markets are yet to fully price the impact of policy divergence into the GBP to EUR conversion.
The risk is for the pound to weaken in the week ahead as the Bank of England (BOE) meets to launch its summer stimulus programme.
Despite the pair’s strong rebound on Friday following downbeat Q2 US growth data, the pair is still in a short-term down-trend from a technical point of view.
Strategists at Morgan Stanley have told clients that they continue to see value in selling the British Pound against both the US Dollar and Euro.
Consolidation is the watch-word when it comes to the GBP to EUR conversion’s outlook, but we hear there remains an overwhelming bias for further declines.
Quarterly foreign exchange forecasts out of BMO Capital following the EU referendum show that the GBP’s recovery back above 1.30 against the EUR could will only occur in twelve months.
Ahead of the all-important US Federal Reserve policy decision and communication we note that the EUR/USD is trading with a positive tone.
The English and European central banks were thought to be in the same boat when it came to the after-effects of Brexit, but recent data is starting to show a growing difference.
Forecaster’s at JP Morgan see EUR/GBP reaching 0.89 by year end, and GBP/USD bottoming at 1.28 in September.
Tech & fund outlook for the GBP/EUR pair in the week ahead.
The Euro was seen to be back under pressure against the US Dollar over the previous week and we question whether a further deterioration is on the cards for the week coming.
Amidst a flurry of revisions, the world’s largest investment bank provides its revised views on how low the Pound will go.
We look at two opposite views on where the Euro exchange rate might go in both the short-term and the long-term
The euro is forecast to continue lower, but those looking for fireworks would best be served looking elsewhere it is argued by a number of analysts.
Goldman Sachs believe that the British pound will reach its nadir in six months and could possibly be trending higher once again in 12 months time.
Pound sterling has fallen at the start of the new week, extending the declines witnessed at the end of Friday. Is that the end of the recovery?
We are on course for the third week of losses in a row for the EUR to USD conversion - where will the selling pressure end?
No trend lasts forever, and this surely holds true for the shared currency which has been under pressure since 2008. We believe there are signs a sustained period of strength is drawing close.
UniCredit Bank have announced an upgrade to their euro exchange rate forecasts, a significant call as we note the accuracy of this bank’s recent forecasts on the currency pair.
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