Sterling got a lift last week from some relative optimism about growth. However, economists at Société Générale expect the EUR/GBP pair to advance nicely on forecasts of extended economic stagnation. 

It is all about growth (and stagnation) 

“The release of softer-than-feared inflation data in the UK has turned the currency around today, but the growth story will be more important in the end.”

“Unfortunately, replacing the fears of the gloomiest UK forecasts with expectations of lengthy stagnation is about as much as can be hoped for. The slow climb in EUR/GBP is set to last all year.”