EURGBP: Still keeping the three-month forecast at 0.89 – Rabobank

According to analysts from Rabobank, Pound’s traders should be focused on the impact of the Autumn Statement and on UK PM Rishi Sunak's political abilities, over the coming days. They still see EURGBP moving toward 0.89. 

Key Quotes: 

“Some commentators have attributed yesterday afternoon’s modest rally in GBP vs. the EUR to reports that the EU was optimistic that a compromise could be struck on the protocol.  However, during the Brexit process GBP tended not to react hugely to day-to-day N. Ireland related news.  This may be a function of the complexity of the situation.  Over the coming weeks we would expect GBP investors to be focused on the impact of the November 17 Autumn Statement, the ability of PM Sunak to hold the Tory party together, the outlook for UK growth/recession and BoE interest rates.”

“We would expect issues surrounding the protocol only to have a clear impact on GBP as any related deadlines approach.  We are yet to be persuaded to alter our bearish view on the pound and maintain a 3-month forecast of EUR/GBP 0.89.”