Gbpeur Forecast End 2026 Jp Morgan

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Gbpeur Forecast End 2026 Jp Morgan

Gbp/Eur To Reach 1.1365 By End 2026

According to JP Morgan, the GBP/EUR pair is likely to be near 1.1765 by mid-2026. However, the pair will then slide lower and will end the year 2026 near 1.1365.

So in a sense, JP Morgan's forecast tells us that the Pound will gain ground during the first half of 2026. But by the end of 2026, the GBP/EUR pair will slide lower and near the 1.1365 handle.

Boe To Cut Rates Aggressively In 2026

This comes at a time when the Pound is already trading strongly against the Euro. This clearly shows that JP Morgan believes the macroeconomic situation will be in favor of the Pound.

In the short term, it can be difficult to predict the accurate direction of the GBP/EUR. But over the next 6-12 months, the forecast of JP Morgan shows strengthening of the Pound followed by selling pressure.

JP Morgan also added that yields in the UK remain attractive. In addition, the BoE is also expected to cut the rates even in 2026. But despite all of this, Pound will remain a solid option for those who take carry trades.

The bank also commented on how the UK fundamentals remain shaky. On top of that, the productivity in the UK's public sector was also weak, which means it will continue to exert pressure on the UK's economy.

Also, there's a very good possibility that the markets might be forced to focus on the debt situation once again. So, when we look at the GBP/EUR exchange rate, we must consider all of these factors.

But despite all these headwinds, the Pound will still be a net winner against the Euro during the first half of 2026. But during the second half of 2026, the Bank of England is expected to take a more aggressive approach towards rate cuts.

In simple words, JP Morgan expects more rate cuts during the 2H2026 from the BoE. So, this will hurt the support of the Pound, and investors will flock towards the Euro.

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