EUR/GBP has moved back down to 0.83 after a short spell up at 0.85 back in late March. As economists at Nordea expect the Bank of England (BoE) to lift its key rate to 1.75% by end-2022, EUR/GBP should plunge to 0.81.

Rate hikes from the BoE to support sterling

“We expect the BoE to move its key rate to 1.75% by the end of the year (currently at 0.75%) and that should support the sterling going forward.”

“We expect EUR/GBP at 0.81 at the end of the year – a level not seen since before the Brexit vote in June 2016.”