![]() ![]() Meanwhile, Rabobank’s Jane Foley expected EUR/GBP to edge to 0.9 in the next six months, which would amount to the GBP/EUR forecast of €1.11. The cross rate from the forecasts above concluding that the bank expected the rate to trade at €1.125 in three months, slumping to €1.08 in the next year, yet recovering to €1.165 in the long term. While Citibnank didn’t provide a direct GBP/EUR forecast, we can calculate the GBP/EUR forecast for 2023. The US investment bank’s forecast for EUR/USD was less upbeat, seeing the currency pair trading at $1.04 in three months, $1.15 in 6-12 months, and keeping flat in the long-term. In their latest pound to euro forecast issued on 16 January 2023, Citibank was bullish on GBP/USD, predicting the British pound rise to $1.17 in the next three months, accelerating to $1.25 in 6-12 months, and trading at $1.34 in the long-term. The pair struggled through high volatility throughout August and September 2022, dropping to an intraday low of €1.08 on 26 September following a disastrous mini-budget of the Liz Truss government. ![]() ![]() But the pair began to slide in April and dropped to 1.16 on 26 June 2022. The GBP/EUR pair briefly moved back above 1.21 in late February 2022 as traders weighed the impact of the Russian invasion of Ukraine on the eurozone economy, anticipating a stronger impact than on the UK economy. The GBP/EUR pair moved above 1.19 in January 2022, after the Bank of England ( BoE) kicked off a series of interest rate hikes in December 2021 with a 15-basis point increase to 0.25%. The pair dipped to 1.1474 in April 2021 but then moved into a trading range between 1.16 and 1.18 for the rest of the year. The upward trend continued into 2021, with the pair reaching 1.1761 in late March. The pair then began to trend higher as the introduction of Covid-19 vaccines raised hopes that the UK economy would start to recover from lockdowns. The rate quickly moved up to 1.1495 in April 2020, but then trended lower over the summer to return to the 1.08 level in September 2020. Try demo GBP/EUR trend reflects economic volatilityĪfter falling in March 2020 from 1.20 to 1.08 on concerns about the impact of the Covid-19 pandemic on the UK economy, the GBP/EUR pair has remained volatile. More recently, concerns over the impact of the Russia-Ukraine war on inflation in the UK and the eurozone have influenced the direction of the exchange rate. The uncertainty surrounding negotiations between the UK and the EU over the UK’s exit from the bloc have weighed on the value of sterling since the 2016 referendum. Market sentiment is a key driver for the GBP/EUR pair. These economic readings are key in shaping a GBP/EUR forecast. Macroeconomic indicators, including GDP, inflation, interest rates, services and manufacturing activity and unemployment, drive the currency markets, as they affect a country’s attractiveness to investors and, in turn, demand for its currency. Both the GBP and EUR represent major global financial and trading centres. Sterling is the former global reserve currency and one of the strongest in the world, while the euro is the second most traded currency in the world after the US dollar (USD). The pair is one of the most frequently traded on the FX markets. The GBP/EUR pair represents how many euros – the quote currency – are needed to buy one British pound – the base currency. In this article, we look at the latest GBP/EUR predictions from analysts, and what factors will influence the exchange rate in the future. With both UK and eurozone economies under pressure from the energy crisis exacerbated by the Russia-Ukraine war, what does the outlook look like for the GBP/EUR foreign exchange ( forex) rate? US30 US Wall Street 30 (USA 30, Dow Jones) ![]()
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