During the course of the current quarter cable has traded mostly within a 1.36 to 1.40 range, with the latter level currently appearing to be some distance away. While economists at Rabobank maintain there is scope for GBP to make some headway vs. the EUR by year-end, the 1.40 level for GBP/USD could remain just out of reach in the months ahead.
EUR/GBP to edge towards 0.84 by year-end
“Assuming better UK data for August than July, we continue to expect EUR/GBP to edge towards 0.84 by year end.”
“Assuming the USD holds relatively firm, GBP/USD could struggle to move beyond the 1.38/39 area by year end.”
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