GBP to outperform euro

Abn Amro
By December 4, 2017 12:24

GBP to outperform euro

FX Outlook 2018

  • FX markets were too negative on sterling in 2017
  • Sterling to outperform the euro in 2018…
  • …because of a drop in inflation resulting in higher UK real yields…
  • …and sterling to profit from temporary euro weakness
  • Year end 2018: EUR/GBP 0.85 and GBP/USD 1.35
  • Sterling to rally in 2019 versus euro and US dollar…
  • …because of a positive UK growth momentum, lower inflation, BoE rate hikes and higher UK real yields
Abn Amro
By December 4, 2017 12:24

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