Eurgbp To Decline Rabobank

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Eurgbp To Decline Rabobank

Eur/Gbp To Decline Towards 0.8150 - Rabobank

For the EUR/GBP pair, the UK's Brexit of 2016 was a big event that significantly changed the trading range. It moved from below the 0.8000 and jumped above the 0.8500 in a short span of time.

This was a sign of the EUR's strength against the GBP and showed a major shift in the EUR/GBP trading range. Fast forward to today, Rabobank now believes that EUR/GBP will decline towards 0.8150 during the next 12 months.

Eur/Gbp Moves To Pre-Referendum Levels

From all the way back to 2016, the average price for EUR/GBP was around 0.8690. The EUR/GBP pair also started in 2023 near that level but has been moving lower since then.

Just a month ago, EUR/GBP moved towards 0.8260 and is currently seen very close to these levels. That's a sign that the GBP strength, which faded away after Brexit, will now resurface once again.

For the next 12 months, Rabobank has forecasted a trading price of 0.8150 for the EUR/GBP. This will send the pair back toward its pre-referendum levels.

However, it will also push the EUR/GBP pair below its lows from 2022. In any case, these moves will bring the EUR/GBP back into the familiar ranges.

The only downside to this EUR/GBP forecast is that the Euro will turn weaker than expected. However, the chance of a stronger GBP than expected will not be the case.

As we are discussing the EUR/GBP, it's also important to look at the US tariff situation. At this stage, it is all speculation about whether Trump will go ahead with its universal tariffs or not.

Also, the UK may escape from heavy tariffs under the fact that it has a trade deficit with the USA. However, the same can't be said about the Eurozone, which will make the Euro more susceptible to weakness in the coming months.

So, even that possibility also points to more downside for the EUR/GBP. In fact, the EUR/GBP could even drop below the 0.8000 level.

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