Why is the pound expected to fall against the euro?

The pound is expected to fall against the euro due to escalating UK political turmoil and the looming prospect of interest rate cuts from the Bank of England.

What are the predictions for the pound's value against the euro?

Goldman Sachs predicts the pound could weaken by 6% against the euro to 0.9200 in 12 months, while Nomura sees a 3% drop to 0.8950 by April.

What is improving the euro's prospects against the pound?

The euro's prospects are improving as the European Central Bank downplays the impact of a stronger currency on inflation, suggesting interest rate cuts are not currently planned.

Home / Business and Economy / Pound Plummets: Euro Set to Soar Amidst UK Turmoil

Pound Plummets: Euro Set to Soar Amidst UK Turmoil

6 Feb

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Summary

Sterling may fall 6% to a three-year low against the euro.
UK political instability and looming interest rate cuts weaken pound.
Euro's prospects improve with ECB downplaying currency strength.

Pound Plummets: Euro Set to Soar Amidst UK Turmoil

Goldman Sachs and Nomura strategists forecast a sharp decline in the pound's value against the euro, anticipating it could reach a three-year low. Goldman Sachs projects a 6% fall to 0.9200 within twelve months, while Nomura foresees a 3% drop to 0.8950 by April.

Recent political events in the UK have intensified pressure on sterling. The currency also faces headwinds from expectations of further interest rate reductions by the Bank of England. This situation contrasts with the euro, which is seeing improved prospects as the European Central Bank downplays concerns about its strength, suggesting interest rate cuts are not imminent.

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