Within the yr to this point, the pound has gained floor versus each the US greenback and the euro. Economists at Rabobank forecast the EUR/GBP pair across the 0.89/0.88 space within the coming months whereas a return to the 0.87 stage is just not anticipated till later within the yr.
Key quotes
“The forthcoming BoE assembly on February 4 could carry some extra color to the inflation outlook within the UK, although for now, the market seems to be extra assured {that a} unfavorable Financial institution price will likely be prevented.”
“The truth that the UK’s lockdown may extent into March and given proof that its fast vaccine programme remains to be a means off from halting the pandemic within the nation, we see scope for extra positive factors within the pound to be restricted near-term.”
“We retain our forecast that EUR/GBP is probably going commerce within the 0.89/0.88 area within the coming months and should not see a return to the 0.87 stage till later within the yr.”
