EUR/GBP: Scope for dips toward 0.85 on a six-month view – Rabobank

Over the past five days, the Pound is the second best performing G10 currency after the NZD. Economists at Rabobank analyze GBP outlook.

GBP to find a little additional support in the coming months

We continue to expect the EUR/GBP pair to be drawn to the 0.86 level on a one-to-three-month view and see scope for dips toward 0.85 on a six-month view on the expectation that rate cuts from the BoE over the coming cycle will lag those from the ECB.

We continue to favour selling rallies in EUR/GBP.