GBP forecasts: EUR/GBP to 0.85 but GBP/USD to 1.3530

MUFG on GBP, up against the Fed-weakened USD but down against the EUR ….

• citing quicker Bank of England interest rate cuts as economic growth slows in the UK
• “Previously we had assumed the first quarter next year would be when the pace of cuts picked up but we have now moved that forward to the fourth quarter this year”

Forecasts for Q2 2025:

• EUR/GBP to 0.85
• GBP/USD to 1.3530

—

Huh … I am wondering about a higher EUR against GBP … a rate cut race I guess … I think maybe the ECB will win though (ie cut faster than the BoE). As for EUR/USD implied at 1.15 … nah.

EUR/GBP chart, I hovered the cursor over 0.85 (as close as I could get being so full of coffee)

This article was written by Eamonn Sheridan at www.forexlive.com.