Both the euro (EUR) and the British pound (GBP) have lost over 12% vs. the US dollar (USD) in the year to date. Economists at Rabobank expect the EUR/GBP pair to hover around the 0.84 area in the near-term but a move towards 0.86 is on the horizon.

 EUR/GBP to hold around 0.84 on a one-to-three-month view

“We retain our forecast that EUR/GBP will hold around 0.84 on a one-to-three-month view.”

“For choice, we are forecasting a move to 0.86 on a six-month view, but how the eurozone copes this winter will be a strong determinant of whether the EUR can pull back some ground vs. GBP in the months ahead.”