Back
2 Feb 2015
GBP stronger vs. EUR, weaker vs. USD – Rabobank
FXStreet (Edinburgh) - Analysts at BTMU assessed the outlook for the sterling vs. its main competitors, the euro and the US dollar.
Key Quotes
“The diverging performance of the pound against both the euro and US dollar has continued early in 2015”.
“EUR/GBP has fallen sharply both in anticipation and initially following the ECB’s announcement that it will purchase EUR60 billion of assets per month at least until the end of September 2016”.
“As a result EUR/GBP has fallen towards the 0.7400-level reaching its lowest level since early 2008, and moving closer to levels which prevailed prior to the global financial crisis when it was trading just below the 0.7000-level”.
“The pound is becoming more overvalued against the euro. In contrast the pound continues to weaken against the US dollar with GBP/USD briefly falling back below the 1.5000-level thereby fully retracing the adjustment higher recorded between the middle of 2013 and the middle of 2014”.
Key Quotes
“The diverging performance of the pound against both the euro and US dollar has continued early in 2015”.
“EUR/GBP has fallen sharply both in anticipation and initially following the ECB’s announcement that it will purchase EUR60 billion of assets per month at least until the end of September 2016”.
“As a result EUR/GBP has fallen towards the 0.7400-level reaching its lowest level since early 2008, and moving closer to levels which prevailed prior to the global financial crisis when it was trading just below the 0.7000-level”.
“The pound is becoming more overvalued against the euro. In contrast the pound continues to weaken against the US dollar with GBP/USD briefly falling back below the 1.5000-level thereby fully retracing the adjustment higher recorded between the middle of 2013 and the middle of 2014”.