EUR/GBP to continue to edge lower to the 0.8150 area – Rabobank
|UK Chancellor Reeves is walking a thin line as she seeks to find a balance between finding the funds to invest for growth while also maintaining the air of budgetary prudence, Rabobank’s FX analyst Jane Foley notes.
GBP is holding up well so far
“To avoid shocking gilt investors too much by the October 30 budget announcements, Reeves has already leaked various parts of her agenda. GBP is holding up well so far, in part because the BoE is less dovish than some other G10 central banks.”
“Meanwhile, a more dovish ECB is undermining the resilience of the EUR. Despite the risks to GBP posed by a change in fiscal policy settings, our central view remains that EUR/GBP will continue to edge lower to the 0.8150 area on a 12-month view.”
“We will revise our USD forecasts in early November and see downside risk to our cable view.”
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.