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- Rabobank expect EUR/GBP to reach 0.86 in six months
Rabobank expect EUR/GBP to reach 0.86 in six months
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Loading...The bank assumes that Brexit will be amused again, predicting a decline in the euro against the pound to 0.86. Before this happens, however, they say, first the price will make a new attempt to test the 0.90 zone. Since the beginning of May, the exchange rate of the euro versus the pound is up, the bank said, advancing to 0.90. The price has so far failed to break this level, limiting the rally to continue.
Rabo admit that, given the combination of political uncertainty and economic weakness, this level can again become vulnerable within one to three months. Based on Brexit's possible new delay, it is expecting EUR / GBP to go down to 0.60.
With regard to the economy, so far UK data from Q2 is bad. Market participants are becoming more confident that the next BoE move will be rate cut. Due to the shift in top positions in the EU, the political "buffer" will become a bit more limited for the next UK Prime Minister. The EU collapse can weaken the soil under the UK's next PM and drag Brexit once again.
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