- Analytics
- News and Tools
- Market News
- EUR/GBP: A more hawkish ECB vs a BoE facing UK recession risks may support the medium-term outlook – Citi
EUR/GBP: A more hawkish ECB vs a BoE facing UK recession risks may support the medium-term outlook – Citi
Economists at Citi analyze EUR/GBP outlook ahead of ECB and BoE meetings.
ECB likely to keep rates higher for longer than BoE
A more hawkish ECB vs a BoE facing UK recession risks may support the medium-term outlook for EUR vs GBP as ECB keeps financial conditions tighter for longer than most other central banks, including the BoE. This then leads to a significant narrowing in EUR/GBP rate differentials in 2024 and a stronger EUR/GBP cross.
A risk to this more positive EUR view is the lack of a Chinese recovery given Euro area’s closer links to China via the export channel. But this risk is likely outweighed by the sharp and sustained rebound in Euro area’s terms of trade from the lows in August 2022 as Europe successfully weans itself from Russian gas.
© 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
