GBP: Range Bound N-Term With A Gentle Depreciation vs EUR - Barclays

GBP: Range Bound N-Term With A Gentle Depreciation vs EUR – Barclays

What is the outlook of GBP through year-end, specifically GBP/USD and EUR/GBP?

Here is their view, courtesy of eFXdata:

Barclays Research discusses GBP outlook and targets GBP/USD around 1.27, and EUR/GBP around 0.91 through year-end.

“We expect a broadly range-bound GBP in the near term with a gentle depreciation drift vs. EUR due to Brexit uncertainties. The lack of a trade deal is likely to disproportionately aï¬€ect the British economy following the pandemic, constraining GBP gains from the global recovery,” Barclays notes.

“While this should also negatively impact Europe, the EUR is likely to be supported near term by a reduction of EA cohesion risk as the Virus Recovery Plan marks an important first step towards European fiscal integration. However, the UK’s many attractive attributes as a place for long-term investments should cap the pound’s downside and help it ascend from its current undervaluation,” Barclays adds.

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Kenny Fisher

Kenny Fisher - Senior Writer A native of Toronto, Canada, Kenneth worked for seven years in the marketing and trading departments at Bendix, a foreign exchange company in Toronto. Kenneth is also a lawyer, and has extensive experience as an editor and writer. Kenny's Google Profile

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