6 Apr 2015
EUR/GBP could test 0.70 in 12-month – Rabobank
FXStreet (Edinburgh) - Senior FX Strategist at Rabobank Jane Foley sees the cross heading towards 0.70 in a 12-month horizon.
Key Quotes
“Political issues aside, we have been arguing that sterling has found good support this year from relative interest rates differentials as policy action from the ECB and other European central banks has driven down rates on the other side of the Channel”.
“Even though the BoE is in no rush to hike rates, MPC members have played down any risk of a rate cut so we expect interest rate spreads to continue to support sterling this year albeit it at a moderated pace”.
“While sterling could be on the back foot vs. the EUR in the coming weeks, we continue to see scope for EUR/GBP to trend lower towards the 0.70 area on a 12 mth view”.
Key Quotes
“Political issues aside, we have been arguing that sterling has found good support this year from relative interest rates differentials as policy action from the ECB and other European central banks has driven down rates on the other side of the Channel”.
“Even though the BoE is in no rush to hike rates, MPC members have played down any risk of a rate cut so we expect interest rate spreads to continue to support sterling this year albeit it at a moderated pace”.
“While sterling could be on the back foot vs. the EUR in the coming weeks, we continue to see scope for EUR/GBP to trend lower towards the 0.70 area on a 12 mth view”.