EUR/GBP to tick back below the 0.87 level in the weeks ahead – Rabobank

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Economists at Rabobank analyze GBP outlook against USD and EUR. 

Potential for further downside risks to Cable

In view of downside risks to global growth, we expect the USD to remain well supported in the coming months as subdued levels of risk appetite underpin safe-haven assets. This suggests potential for further downside risks to Cable. 

However, we see scope for EUR/GBP to move back below the 0.87 level on the back of weak German economic data and our house view that the Eurozone may already be in a technical recession.