Forecasts for EUR to GBP
Based on recent forecasts and market updates, FX analysts at HSBC believe that the rally in both the EUR and GBP has played out and anticipate a reversion lower in the months ahead. This shift in sentiment is attributed to a turn in consumer confidence in both the UK and Eurozone, which tends to precede macroeconomic underperformance. The overall performance of the Eurozone economy and the direction of ECB interest rates are also considered significant factors in the value of the euro exchange rate.
The GBP has also witnessed a turning point, according to HSBC and other major British banks such as Barclays. The strength of the US dollar is seen as unstoppable, contributing to the change in outlook for the pound. Additionally, the GBP has been heavily influenced by Brexit, with any uncertainty and detrimental economic impact from ongoing negotiations leading to significant fluctuations in sterling exchange rates.
Looking at the recent EURGBP price data, the exchange rate is currently at 0.8655, just 0.7% above its 3-month average. It has traded within a stable range of 2.3% from 0.8513 to 0.8713. As for Brent Crude OIL/USD price data, oil is currently trading at 95.14, which is 11.4% above its 3-month average. It has experienced a highly volatile range of 33.7% from 72.26 to 96.61. These trends in oil prices can have an impact on the euro exchange rate.
In conclusion, based on the assessment of market analysts, the euro and pound are expected to revert lower in the coming months due to factors such as consumer confidence, macroeconomic performance, Brexit uncertainty, and the strength of the US dollar. It is important for individuals and businesses involved in EUR/GBP transactions to closely monitor these factors and seek guidance to make informed decisions.
