EUR/GBP to revisit 0.90 as China reopening favor Euro relative to its European peers – TDS

Economists at TD Securities discuss GBP outlook and expect the EUR/BP pair to hit the 0.90 level.

Data trends favor EUR/GBP higher

“We upgraded our GBP view, underscoring the lift from a weaker USD profile. That said, we still think EUR/GBP revisits 0.90, as China reopening and relative Asian growth outperformance favor EUR relative to its European peers.”

“Domestic fragilities should keep GBP anchored relative to EUR and CHF at least.”

“GBP's growth and inflation mix is still poor relative to EUR, which gets a better terms of trade and China lift.”