Ing Bearish Forecast Gbpeur

last updated on

Ing Bearish Forecast Gbpeur

Ing Issues Bearish Forecast For Gbp/Eur

According to ING, the GBP/EUR pair will drop to 1.11 in the year 2026. This comes at a time when the world is going through a phase of rate cuts. Almost all the major central banks are now lowering rates as inflation is no longer a major concern.

But, ING believes that neither the Pound nor the Euro is looking attractive at all. So, it's more of a competition about which currency is weaker than the other.

Boe To Introduce More Rate Cuts

However, the market sentiment is very bearish for the Pound. So, that's the base case why ING believes that GBP/EUR will trend lower in 2026.

In 2026, the Bank of England will go on an aggressive path of rate cuts. So, all the support for the GBP will dry up and will likely find its way towards the Euro.

However, a good budget could stop the BoE from going ahead with aggressive rate cuts. But, there's a good chance that we can expect multiple rate cuts from the BoE next year.

quick look at the Eurozone shows that political uncertainty remains high in France and a few other countries. But, it only means short-term vulnerability for the Euro as ING believes that it will not take that long.

As for the Pound, there are significant risks in terms of fiscal and monetary policies. Looking ahead, ING also believes that taxes will increase further in the UK.

Even the UK budget will pose some major risks for the GBP. But if the BoE can reassure the markets, then the decline in GBP could be stopped.

The bottom line is that the Euro is looking like a really good option against the Pound. Also, the interest rate difference supports the Euro against the Pound.

So with all things considered, it appears the GBP/EUR is now heading towards 1.11 or even lower in 2026.

Trending Stories