Gbpeur Will Touch Higher Ing

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Gbpeur Will Touch Higher Ing

Gbp/Eur Will Touch 1.22, According To Ing

GBP/EUR is enjoying a short-term bullish trend, as evident from its multi-week high trading price. This comes as the world is navigating geopolitical tensions and ongoing trade wars.

However, a rebound is seen in the risk appetite, which has also helped the equities. Both of these things were bullish for the Pound, and that's what we are seeing in the GBP/EUR pair.

Gbp/Usd Stay Bearish In Long Term

However, it's worth noting that the deal between the US and China will only last for 3 months. So, when that period is over, there's no telling what will happen next.

According to the ING, the short-term momentum favors a bullish Pound against the EUR. They added that the yield spreads are highly likely to stay positive. But they commented on how the EU and the UK relations are the key drivers for the GBP's strength.

Amidst all of this, there's also tension between the US and its European allies. So, that's also something which is weighing heavily on the EUR.

All of this has led the ING to issue a forecast of 1.2200 for the GBP/EUR pair. But in the medium term, the inflation levels in the UK will drop, which will lead to a more dovish BoE.

And we all know that a dovish BoE will result in a weaker GBP against the EUR. So, while the short-term (next few months) is bullish for GBP/EUR, the long-term picture tells a different story.

ING added that lower interest rates will undermine the GBP. And when that happens, the GBP/EUR will likely drop to 1.15 during the next 12 months.

To conclude, the GBP/EUR is expected to be bullish during the next 1-3 months. But the 12-month view shows that the long-term trajectory of the GBP/EUR is bearish.

However, what happens if the UK closes a good trade deal with the USA? In that case, the GBP will keep surging against the Euro.

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