Euro Forecast

Danske Bank see the British Pound falling to as low as the mid 1.08’s within six months.

Dutch lender ABN Amro have communicated to clients that they have upgraded their forecasts on the UK economy and on Sterling.

The British pound is tipped to rise versus the euro and the US dollar after fears of an economic collapse in the aftermath of Brexit proved unfounded.

The EUR/GBP pair has started falling due to the pound being supported by recent data, where to now for EUR/GBP?

“GBP has recovery potential from here as post-Brexit data have come in stronger than
anticipated.”

Morgan Stanley is maintains a bullish stance on the single currency only days before the ECB Governing Council meeting.

The British Pound has recovered from multi-year lows set in August at around 1.1475 to back above 1.19 at the time of writing.

News, data in the coming week, forecasts and background information for one of the most heavily traded of pairs.

Pound Sterling is expected to recover having formed a bottom to its post-referendum declines.

Those expecting the Pound to par the Euro will be disappointed say Bank of America Merrill Lynch Global Research.

The pound has come off its highs -  whether that is because it is a bank holiday in the UK, or because investors foresee the possibility of PMI data disappointing latter in the week, is a moot point, sterling is a marginally lower at the start of the trading week.

The pound to euro is in a short-term uptrend after positive data from the UK dispelled myths the economy was going to lurch into a chasm after Brexit.

With the impact of Brexit on the Eurozone seemingly minimal at the moment, there seems less and less chance the ECB will start to reflate the economy in September, at least according to Credit Agricole’s stable of analysts.

With Pound Sterling turning lower on Thursday 25th of August owing to technical shifts in the foreign exchange market, we turn to a number of respected analysts to divine where the GBP/EUR conversion could be headed.

Data from the Eurozone showed a positive rise in the Services sector which helped dispel fears that Brexit would seriously damage the economy of the Eurozone.

The outlook for the GBP/EUR pair in the week ahead, including technical, fundamental, data releases and analysts’ forecasts and views.

The big question remains - how low can the British Pound go - and we have another insight for our readers to consider.

The GBP is said to be 10% undervalued on a trade-weighted basis - allowing for increased prospects for a strong recovery.

Sterling has taken a hell of a pounding on the ropes of late, however, both technically and fundamentally there are signs a recovery could be on the horizon, and an aged fighter’s bleary, bloodshot, half-opening eye is signalling there is still life in the old veteran yet.

 The pair continues to decline and although it has hit our favoured target at 1.1600,. we see potential for more weakness down to 1.1400.