Forecasts for GBP to EUR
Recent exchange rate analyst forecasts and currency market updates suggest a turning point for the GBP to EUR exchange rate. HSBC and Barclays, two major British banks, have signaled a shift in their outlook on the Pound, with both being less bullish on the currency. HSBC, in particular, had been optimistic about the GBP and EUR since November 2022 but now believes that the rally in each currency has played out and expects a reversion lower in the months ahead.
HSBC points to declining consumer confidence in both the UK and Eurozone, which tends to precede macroeconomic underperformance. This change in sentiment reflects the ongoing uncertainty surrounding Brexit negotiations and the detrimental economic impact of the UK's departure from the EU. Additionally, the GBP/USD exchange rate, often used as a benchmark for other currency pairs, including the EUR/USD, is known for its high volatility, which can be influenced by economic data releases, political events, and changes in central bank policy.
Looking at the recent GBPEUR price data, the exchange rate is currently at 1.1547, just 0.7% below its three-month average of 1.1632. It has traded within a stable range of 2.4% from 1.1477 to 1.1747. As for the euro, its value can be impacted by oil price movements. In recent Brent Crude OIL/USD price data, oil is currently at 95.38, which is 11.7% above its three-month average of 85.37, having experienced significant volatility within a range of 33.7% from 72.26 to 96.61.
Given these factors and the market view, it is anticipated that the GBP to EUR exchange rate may experience a downward movement in the coming months. However, it is important to note that exchange rates are influenced by numerous factors, and unexpected events can always lead to deviations from forecasts.
