EUR/GBP to remain close to recent ranges – Rabobank

UK recession risks to undermine long GBP positions into the final months of the yearDespite concerns about the stickiness of core inflation in the Eurozone, we see risk that ECB rates have already peaked. By contrast, we expect the BoE to follow an anticipated 25 bps rate hike this week with another in September. While interest rate differentials would appear to favour the Pound, we expect UK recession risks to undermine long GBP positions into the final months of the year.

We expect both GBP and the EUR to give back some ground vs. the USD in the coming months and for EUR/GBP to remain close to recent ranges.Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions.

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