EUR/GBP to trade towards 0.89 by year end - Rabobank

Jane Foley, Senior FX Strategist at Rabobank, explains that the longer the uncertainty over the UK’s future trading relationship with the EU lasts, the longer the potential downside pressure on investment spending, employment growth and inflation and longer will be the uncertainty over the direction of EUR/GBP pair. 

Key Quotes

“We see scope for GBP to be pressured lower vs. the EUR in the coming months.  On the back of recent better economic data from the Eurozone, a less dovish ECB and the assumption that Le Pen will not win the French Presidency, we expect EUR/GBP to trade towards 0.89 by year end and 0.90 on a 12 mth view.”