Pound to Rebound Against Euro in 2026: Barclays - Pound Sterling Live

What the desk is arguing

Barclays has posited that the British Pound will regain strength against the Euro by 2026, forecasting a relative recovery attributed to anticipated economic improvements. The bank’s analysis highlights that recovery in domestic demand, coupled with progressive monetary policy shifts in the UK, could create favorable conditions for the Pound to strengthen.

This outlook implicitly challenges more conservative predictions that suggest the Pound will continue to be weighed down by persistent uncertainty regarding the UK’s economic landscape and trade relations post-Brexit. Barclays' optimism points to a potential turning tide as growth initiatives begin to take root, thereby giving the Pound a boost against the Euro in the future.

Where it sits in our coverage

Our current consensus target for GBP/EUR sits at 1.075, reflecting a cautious but hopeful outlook on GBP relative to a stable Eurozone. This target aligns with Barclays' positon, as they are seeing the Pound moving on a path toward recovery within a similar context despite lingering market-specific headwinds.

Specific targets from other firms include: - Barclays: 1.10 (Dec-26) - JPMorgan: 1.10 (Mar-26) - BofA: 1.04 (Mar-26)

How other firms see it

Other firms exhibit mixed sentiments regarding the Pound's trajectory against the Euro. While JPMorgan shares a similar bullish forecast aligned with Barclays, BofA presents a more conservative view, projecting a target lower than the consensus, illustrating caution about long-term GBP strength.

• JPMorgan: Aligned
• BofA: Contrary