EUR/GBP remains in familiar ranges. In the view of analysts at Rabobank, the pair is likely to trend higher into the middle of the year and beyond. 

Even on the bleakest scenario growth, the eurozone would still achieve 2.3% this year

“Assuming the market retains its expectation that energy black-outs and stagflation will be avoided in the eurozone, EUR/GBP is likely to avoid another retreat towards the recent lows close to 0.82 and should head higher towards the middle of the year.”

“Stagflationary risks could come from a worsening in the energy crisis in Europe. This week ECB President Lagarde offered reassurances that this was not on the cards and that even on the bleakest scenario growth that the Eurozone would still achieve 2.3% this year. As long as the market holds on to this outlook, we expect EUR/GBP to push higher towards 0.85 on a three to six-month view.”