EUR/GBP has paid little heed to the news related to Northern Ireland this week. Economists at Rabobank retain a six-nine month forecast of EUR/GBP 0.90.

UK backdrop remains sour

“Even though, this week’s news provides a glimmer of hope for the outlook regarding the Northern protocol and thus for an improvement in investor sentiment, as things stand that UK backdrop remains sour.”

“Insofar as UK fundamental remains characterised by recession, high inflation, low investment growth and weak productivity we continue to expect EUR/GBP to edge towards 0.90 on a six to nine-month view. That said, we will be continuing to watch developments surrounding the protocol closely.”