g10 fx
Loading…
FX BANK FORECAST · COVERAGE
Institutional FX coverage in your inbox
Aggregated year-end forecasts, scenario shifts, and curated analyst notes from 38 institutional desks. No promotion.
FX BANK FORECAST · COVERAGE
Aggregated year-end forecasts, scenario shifts, and curated analyst notes from 38 institutional desks. No promotion.
At a Glance
Goldman's bullish outlook on the EUR/GBP pair indicates a strong forecast for the Euro against the Pound by 2026. Their backing suggests a significant appreciation driven by macroeconomic factors and relative growth prospects between the Eurozone and the UK, defying prevailing market apprehension regarding inflation and monetary policies.
Key Takeaways
Full Analysis
Goldman Sachs projects a notable rise in the EUR/GBP exchange rate by 2026, driven by robust economic fundamentals in the Eurozone as compared to the UK. This perspective underscores a belief in the Euro's strength amidst potential weaknesses in the British economy, particularly as it navigates post-Brexit challenges and inflation pressures.
This outlook stands in contrast to the cautious sentiment prevailing among other market participants. While concerns about inflation and interest rate hikes loom large, Goldman’s analysis suggests a more optimistic trajectory for the Euro, positioning it to outperform the Pound in the coming years.
Currently, our consensus target for EUR/GBP sits at 1.075 with a firm spread reflecting a range between 1.04 and 1.12. This aligns with Goldman's view, suggesting upward potential for the Euro against the Pound and reinforcing the optimism stemming from expected Eurozone growth.
Several other banks have also released forecasts for this cross. Specific targets include: - JPMorgan: 1.10 (Mar 26) - Barclays: 1.09 (Mar 26) - Credit Suisse: 1.08 (Mar 26)
While Goldman is bullish on EUR/GBP, other firms hold divergent positions. Notably, BofA takes a more cautious stance, forecasting a target of 1.04 for the same tenor, suggesting potential weakness for the Euro against the Pound in light of prevailing economic uncertainties.
These contrasting views highlight the market's divided sentiment, with some firms advocating for strong Euro prospects while others remain wary of external economic pressures and potential shocks.
Market Implications
Goldman's bullish forecast could lead to increased buying interest in Euro-denominated assets as expectations for the Euro strengthen. This might also impact the broader forex market, as traders adjust their positions in anticipation of a stronger Euro, influencing other currency pairs connected to both the Euro and Pound.
From the original
<a href="https://news.google.com/rss/articles/CBMiuAFBVV95cUxNYkRMbndYWElpd0Ywc1RMMUdpbGtvaWdrVnZKVGtJcXRMb2t4VW93dXRVX2NvamU4TFBaeGpheUMzNFM1MGFwOENjdmdwSks2bGJjaDZsaUV3ZHJ6SDJDeG51eEF5SEVWcWxaOHFaRnJiNjFqaFNRN2JsVXlJTkZ6cktSZHp3NGxHdUJpVGVVS0RiLWxwM29TSlp6Q2lfNWxQQ1dVUkotM05XNj
Goldman Sachs has issued a bullish forecast for the GBP/EUR pair, projecting a target of 1.11 within the next twelve months. This outlook suggests a strengthening of the British pound against the euro, which could be driven by several macroeconomic factors and shifts in monetary policy. The bank appears optimistic about the UK's economic trajectory compared to the Eurozone, anticipating that current trends will favor the GBP.
Goldman Sachs has projected a robust outlook for the GBP/EUR pair, envisioning a rise to 1.11 over the next twelve months. This forecast reflects expectations of stabilizing economic conditions in the UK alongside a potential weakening of the euro, which may push the pound higher against its European counterpart.
The desk interprets Goldman Sachs' recent commentary as a signal that while GBP/EUR weakness is postponed, it remains a looming concern, with a target of 1.09 by the end of 2026. Per the full note [source], the analysis suggests that despite current resilience in GBP, structural challenges persist that could lead to depreciation against the EUR in the medium term. This aligns with our view that the market is underestimating potential headwinds from the UK economy, particularly in light of ongoing inflationary pressures and monetary policy adjustments.
Goldman Sachs projects a bearish outlook for GBP/EUR, recommending a sell with a near-term target set at 1.1440. This stance stems from expected economic headwinds for the UK amidst a resilient Eurozone, suggesting a stronger euro could further pressure the pound.
Live cross-firm bank consensus across 38 desks — FX, oil & gold
View bank forecasts