By Areena FxThe Euro (EUR) against the British Pound (G
EUR/GBP Forecast: Gradual Move Towards 0.8700 Anticipated in the Coming Month BP) is expected to make a gradual upward move towards the 0.8700 area in the upcoming month, according to analysts at ING. This projection comes as the Pound Sterling consolidates at slightly lower levels following a dovish stance from the Bank of England (BoE).
BoE’s Dovish Turn:
The recent dovish statements and minutes from the Bank of England were reinforced by an interview with Governor Andrew Bailey in the Financial Times. Bailey hinted at the likelihood of multiple rate cuts throughout the year, further solidifying market expectations for monetary policy easing. This dovish shift by the BoE has contributed to establishing a support level around 0.8500 for the EUR/GBP pair.
Outlook for EUR/GBP:
With the groundwork laid by the BoE’s dovish stance, the EUR/GBP pair is anticipated to gradually climb towards the 0.8700 area over the coming month. This forecast is supported by the ongoing dynamics in the currency markets and the evolving sentiment surrounding the pound sterling.
GBP/USD Outlook:
Despite the bearish sentiment towards the pound sterling, particularly against the US dollar (USD), analysts maintain a relatively neutral stance. They expect some demand to emerge for GBP/USD, especially around the 1.2600 level, based on their view of the dollar’s performance.
Conclusion:
In summary, as the Pound Sterling consolidates at lower levels following the BoE’s dovish communication, the EUR/GBP pair is positioned for a slow ascent towards 0.8700 in the coming month. Traders should closely monitor developments in central bank policies and market sentiment for further insights into currency movements.