EUR/GBP has recently breached the 0.87 level, the lowest level since December 2022.

Range bound

“EUR/GBP is stuck between opposing forces. On the one hand, we expect relative rates and near-term broad EUR optimism to act as a tailwind for the cross. On the other hand, we see the global growth slowdown and the relative appeal of UK assets acts as a headwind.”

“At present, we do not see the relative growth outlook or global investment environment to create significant divergence between EUR and GBP. We thus expect the cross to remain range bound around 0.87-88.”