EUR/GBP: Brexit and new covid variant to weigh on the pound – Rabobank

Investors are not convinced about the upside potential for the pound, in the opinion of economists at Rabobank. Therefore, they retain their year-end EUR/GBP 0.85 target.

Downside potential for EUR/GBP to be limited

“Since Brexit issues have not strayed far from the headlines this year and with covid cases remaining high in the UK, we expect investors will remain wary of the pound.”

“we expect that downside potential for EUR/GBP to be limited even on the announcement of a December rate hike from the BoE.” 

“We retain our year-end target of EUR/GBP 0.85.”