- Analytics
- News and Tools
- Market News
- EURGBP to remain elevated in the near-term, but to move lower in the longer-term – Danske Bank
EURGBP to remain elevated in the near-term, but to move lower in the longer-term – Danske Bank
As expected, the Bank of England (BoE) raised Bank Rate by 75 basis points to 3%. EURGBP initially moved higher. Economists at Danske bank expect the pair to remain elevated for now, but a move back lower is likely in the longer-term.
A slowing pace of hikes going forward
“In line with our expectation, the BoE hiked the Bank Rate by 75 bps to 3.00% with 7 members voting for a 75 bps hike, one member voting for 50 bps and one member voting for 25 bps. As expected, there was no news in regards to QT-communication as outright selling of government bonds commenced on 1 November.”
“We expect fiscal tightening and recession to weigh on the economy, which in our view, supports a slower hiking pace going forward. We maintain our call for a 50 bps hike in December and 25 bps in February with risks to our call skewed towards additional hikes in 2023.”
“We see a case for EURGBP to remain elevated in the near-term, but in the longer-term expect the cross to move lower as a global growth slowdown and the relative appeal of UK assets to investors are a positive for GBP relative to EUR.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
