Gbpeur Forecast For 2025

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Gbpeur Forecast For 2025

Gbp/Eur Forecast For 2025, According To Analysts

The forecast made by several investment banks is that the GBP/EUR will move higher towards 1.2200. It's important to note that the 2024-end trading price of GBP/EUR was 1.2050, which means 2025 will end with 150 pips gain only.

However, there are some analysts who believe that GBP/EUR will end 2025 with more gains. HSBC is one such investment bank which has set a target price of 1.25 by the 2025 end.

ING has also shared its forecast for the GBP/EUR & has set a price of 1.22. According to them, the trend in GBP/EUR is mainly driven by the actions from the ECB and BoE. ING also added that they are expecting a 150 bps rate cut while the market is forecasting a 55 bps rate cut.

According to them, they are not bearish on the GBP/EUR because the BoE will likely start an aggressive easing cycle in February 2024. Given this, they believe that a 1.22 price target is completely reasonable.

Meanwhile, Danske Bank believes that tailwinds for the GBP will fade in the long-term. They also beleive that the GBP will be weighed down by the Bank of England.

If we look at the situation, the ECB has lowered the deposit rate from 4 to 3%. Meanwhile, the markets believe that it will drop further to around 2.25%.

An interest rate of 2.25% will mean narrower yields which will limit the support for the GBP. For the year 2025, the performance of the UK economy will also be a key metric for the GBP.

Goldman Sachs is bullish on the GBP/EUR pair, which means they are Pound Bullish. They added that global factors will be key for the GBP.

For starters, the GBP will be less vulnerable to the tariff risks by US President Donald Trump. Also, the uncertainty over the trade will also benefit the GBP against the EUR. According to Goldman Sachs, the GBP/EUR is highly likely to touch 1.2660 by the end of year 2025.

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