EUR/GBP to hover around 0.85 as the pound walks in tight rope – Rabobank

EUR/GBP has trended lower since the start of the month. Economists at Rabobank forecast the EUR/GBP pair at 0.85 over the next three months while GBP/USD is seen at 1.36.

See: EUR/GBP to move downward to 0.83 over next 12 months – Danske Bank

GBP investors fear headwinds to growth

“The backdrop of lagging economic growth in the UK combined with less monetary and fiscal accommodation is a concern for GBP investors.”

“We expect EUR/GBP to hold close to the 0.85 level in a three-month view.” 

“We expect USD strength to keep cable in the 1.36 area on a three-month view.”