Both the euro (EUR) and the British pound (GBP) have lost over 12% vs. the US dollar (USD) in the year to date. Economists at Rabobank expect the EUR/GBP pair to hover around the 0.84 area in the near-term but a move towards 0.86 is on the horizon.
EUR/GBP to hold around 0.84 on a one-to-three-month view.“We retain our forecast that EUR/GBP will hold around 0.84 on a one-to-three-month view.”
“For choice, we are forecasting a move to 0.86 on a six-month view, but how the eurozone copes this winter will be a strong determinant of whether the EUR can pull back some ground vs. GBP in the months ahead.”
EUR/USD rebounds toward parity after dismal US PMI data
EUR/USD has gathered recovery momentum and climbed toward parity in the early American session after the data from the US showed that the business activity in the private sector continued to contract in August while price pressures softened.
GBP/USD reclaims 1.1800 amid renewed dollar weakness
GBP/USD has extended its daily rebound and advanced beyond 1.1800. After the data from the US showed that the Manufacturing and Services PMI’s fell in August’s flash estimates, the dollar came under strong selling pressure and provided a boost to the pair.
Gold rises toward $1,750 after US PMI data
Gold has broken out of its daily consolidation channel and started to rise toward $1,750 in the American session. The broad-based selling pressure surrounding the greenback on dismal August PMI figures fuels XAU/USD’s rebound.