The Pound has been able to hold at high levels against the EUR in recent months. Economists at Commerzbank analyze GBP outlook.GBP supported in the short term.We have adjusted our forecasts, as inflation in the UK, which is still quite high for the time being, should maintain rate hike expectations for the BoE, from which the Pound should benefit. At the same time, recession concerns for the eurozone should weigh on the EUR.
In the medium term, however, we continue to expect an upward movement in EUR/GBP. We expect the BoE to cut its key rate again in the middle of next year in view of the weak economic development. In contrast, we expect the ECB to leave its key rate unchanged, contrary to the market’s belief. This should make the ECB more hawkish, which will make the EUR more attractive against the Pound.
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EUR/USD advances toward 1.1000 as risk sentiment firms up
EUR/USD advances toward 1.1000 as risk sentiment firms up
EUR/USD is holding higher ground, heading toward 1.1000 in Wednesday’s European session. The pair is recovering ground amid a broadly subdued US Dollar and an improved market mood, as investors shrug off China’s deflation worries.
EUR/USD News
GBP/USD drops below 1.2750 despite risk-on mood
GBP/USD drops below 1.2750 despite risk-on mood
GBP/USD is falling back below 1.2750, reversing the Asian rebound in the European trading hours. The pair fails to draw support from a softer tone around the US Dollar and a positive shift in risk sentiment in an otherwise data-light trading day.
GBP/USD News
Gold price rebounds as Greenback drops amid neutral Fed policy guidance
Gold price rebounds as Greenback drops amid neutral Fed policy guidance
Gold price capitalizes on correction in the US Dollar propelled by positive market sentiment. The precious metal rebounds as Fed policymakers anticipate that interest rates by the central bank have peaked for now.
Gold News
Could Bitcoin price advance amid higher US inflation rate expectations?
Could Bitcoin price advance amid higher US inflation rate expectations?
The announcement of the US inflation rate, aka the CPI, on August 10 at 12:30 GMT could further clarify Fed’s next step. Based on the forecasts, the year-over-year inflation rate is expected to rise from 3% in June to 3.3% in July.
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