16 Jun 2015
EUR/GBP seen at 0.70 by year-end – JP Morgan
FXStreet (Edinburgh) - In the opinion of analysts at JP Morgan, the cross could be headed towards the 0.70 area in Q4 2015.
Key Quotes
“We envisage a period of consolidation in EUR/GBP (with upside risks should a resolution for Greece be found, even if only of the can-kicking variety, seeing as though EUR/GBP is the most undervalued euro cross), yielding to moderate outperformance from GBP in the second half of the year as thoughts once again turn to the long awaited inflection point in BoE policy”.
“End-of year forecasts are held at 0.70 for EUR/GBP and 1.50 on cable (cable is lower as we expect the Fed to beat the BoE to the punch, and start raising rates around two quarters before the BoE does)”.
Key Quotes
“We envisage a period of consolidation in EUR/GBP (with upside risks should a resolution for Greece be found, even if only of the can-kicking variety, seeing as though EUR/GBP is the most undervalued euro cross), yielding to moderate outperformance from GBP in the second half of the year as thoughts once again turn to the long awaited inflection point in BoE policy”.
“End-of year forecasts are held at 0.70 for EUR/GBP and 1.50 on cable (cable is lower as we expect the Fed to beat the BoE to the punch, and start raising rates around two quarters before the BoE does)”.