UK virus concerns and a bounce in the EUR recently brought EUR/GBP to the highest level since early March. Nevertheless, economists at Danske Bank still expect a stronger pound despite the bump. UK economy to outperform the euro-area this year “The UK is gradually reopening supported by fast vaccinations, which, combined with businesses getting used to the new EU-UK trading relationship, means that the outlook for the UK economy looks much brighter. We expect the UK economy will outperform the euro area this year.” “EU-UK trade recovered in February after a sharp drop in January although trade is not all the way back to more normal levels. Overall, we think Brexit as a theme has moved into the background now, but keep an eye on the EU-UK negotiations on the implementation of the Northern Ireland protocol.” “We have seen a significant repricing of the Bank of England (BoE) in Q1. It is not long ago a negative BoE Bank Rate was a theme, but now the first 15bp rate hike is priced already in November 2022, which would take the Bank Rate back to 0.25%. We think this is slightly to the aggressive side, as we do not expect any hikes through 2022, at the moment. Eventually, the BoE is likely to tighten monetary policy earlier than the ECB.” “We think the recent EUR/GBP increase closer to 0.87 is a bump in the road and remain bullish on GBP, as we are still more upbeat on the UK than on the euro area. Near-term, we expect EUR/GBP to trade around the current levels before the cross starts to move lower again. We still forecast EUR/GBP will trade at 0.83 in 12M.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next EU’s Breton: There will be enough vaccines for 70% of bloc’s population by July FX Street 2 years UK virus concerns and a bounce in the EUR recently brought EUR/GBP to the highest level since early March. Nevertheless, economists at Danske Bank still expect a stronger pound despite the bump. UK economy to outperform the euro-area this year "The UK is gradually reopening supported by fast vaccinations, which, combined with businesses getting used to the new EU-UK trading relationship, means that the outlook for the UK economy looks much brighter. We expect the UK economy will outperform the euro area this year." "EU-UK trade recovered in February after a sharp drop in January although trade is… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.