EUR/GBP seen at 0.89 in 12M – Danske Bank

Over the past month, EUR/GBP has moderately risen. Economists at Danske Bank analyze the pair’s outlook.

GBP headwinds to persist

We expect the UK economy to perform relatively worse than the Euro area and the conclusion of the Bank of England hiking cycle to weigh on GBP. 

Near-term, we expect the cross to range trade on the back of little divergence in either the growth or monetary policy for the rest of the year. 

We target the EUR/GBP pair at 0.89 in 12M.