EUR/GBP: Heading towards 0.83 by the end of 2022

EUR/GBP: Heading towards 0.83 by the end of 2022

The UK economy has now fully recovered and while GDP has not yet returned to pre-crisis levels, recovery is in full swing. According to Danske Bank economists, the pound sterling may continue to appreciate, but more slowly than at the beginning of 2021.

Strong Pounds in the Coming Months

“We still expect GBP to appreciate, albeit at a more moderate pace than in early 2021.”

“The UK economy is growing faster than the Eurozone, the Bank of England is nearing the start of a rate hike cycle and the pound sterling will benefit from general investment sentiment, while the USD will benefit from Fed tightening and a peak industrial cycle. Happening.”

“Pound sterling will be exposed to a scenario in which pessimism in the markets rises and/or the UK economy falls short of expectations.

“Rising political tensions between the EU and the UK over the Northern Ireland Protocol could also undermine the GBP – as could the second referendum on Scottish independence.”

“Forecasts: 0.85 (1M), 0.84 (3M), 0.84 (6M), 0.83 (12M), 0.83 (end of 2002).”

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