EUR/GBP to trade marginally lower in the coming months – Danske Bank

Economists at Danske Bank forecast EUR/GBP at 0.85 in 12 months as global growth slowdowns and relative appeal of UK assets to investors are a positive for the Pound relative to EUR.

Modestly lower in 2023

“In the very near-term, we expect fragile risk appetite and too aggressive market pricing on the BoE to keep EUR/GBP around current levels.”

“Further out, we remain cautiously optimistic that the cross will head modestly lower as a global growth slowdown and the relative appeal of UK assets to investors are a positive for GBP relative to EUR.”

“Forecast: 0.87 (1M), 0.86 (3M), 0.85 (6M), 0.85 (12M).”