The ECB/BoE meet this week, with prospects of a hawkish shock from the previous. That favors upside in EUR/GBP, within the view of economists at TD Securities.
Massive danger for GBP lies within the vulnerability of the housing market
“In Europe, we anticipate a 50 bps hike from each the ECB and BoE however see the hawkish dangers skewed to the previous. That favors upside in EUR/GBP, because the ECB has the wiggle room to ship 75 bps, whereas the BoE ought to disappoint market terminal charge expectations over time.”
“China reopening favors EZ development over the UK, particularly within the context of housing vulnerabilities. In flip, we argue that the latest dip of EUR/GBP provides a great entry level to start out scaling into lengthy publicity forward of this week’s occasion danger.”