GBPEUR has broken out of a near 2-year range, driven by widening interest rate differentials and greater political risk on the continent. As we see it, growth and rate differentials should support GBPEUR trading marginally higher over coming months too, with our expectation for the cross to stabilise around 1.19. European election risks could see the cross temporarily outperform our short-term forecasts, though we think a break above 1.20 is unlikely, while longer term risks also favour sterling outperformance relative to our base case, with US elections in particular set to a major factor in the coming months.
You can read our GBPEUR Update in full here:
Author:
Nick Rees, FX Market Analyst
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This information has been prepared by Monex Europe Holdings Limited, part of Monex S.A.P.I. de C.V. (“Monex”). The material is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is, or should be considered to be, financial, investment or other advice on which reliance should be placed. No representation or warranty is given as to the accuracy or completeness of this information. All entities in the “Monex” group of companies are regulated for different products and services within the jurisdictions in which they operate. Details of the different entities can be found here. Details of the respective entities’ regulated status and available products and services can then be found on the relevant links to the individual jurisdictions’ website.
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