EUR/GBP to reach 0.89 in the first quarter of 2023 – ING
EUR/GBP bore the brunt of yesterday's Euro strength. Economists at ING expect the pair to hit 0.89 in the first quarter of next year.
November UK retail sales figures look very poor
“EUR/GBP faces the double whammy not only from the hawkish ECB but also from what the hawkish ECB means for the global risk environment. Sterling is a high beta on global risk given its large current account deficit and the large role of financial services in the UK economy.”
“We have an 0.89 forecast for EUR/GBP in 1Q23 and yesterday's ECB move supports the forecast. We have also just seen November UK retail sales figures, which all look very poor.”
“Interestingly, the Swiss National Bank (SNB) will protect the Swiss Franc a lot more than the BoE will protect Sterling and that is why we see GBP/CHF heading lower too.”
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