EUR/GBP: Risk of move to 0.92 on a 2 to 3-month view – Rabobank
|Rabobank analysts note that the British pound has received a boost from the latest round of upbeat macroeconomic data releases from the UK.
Key quotes
"The numbers suggest that consumers may be more active than expected while inflationary forces could be growing. These data will likely emphasise the concerns of some market participants that huge levels of monetary and fiscal stimulus combined with supply chain disruption will result in higher prices."
"That said, it appears that the consensus among major central banks and the broad community of economists is that any current price pressures will be temporary. The better tone of UK data has pushed back on fears of a negative policy rate from the Bank of England. By contrast, the latest UK political developments have little to offer sterling."
"The latest round of talks on a trade deal between the UK and the EU have drawn to a close with no breakthrough agreement in sight. Unless this status quo alters in the weeks ahead, EUR/GBP is likely to be pushed higher. We see risk of move to EUR/GBP 0.92 on a 2 to 3-month view if a compromise on trade with the EU remains elusive."
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.