Forex Flash: EUR/GBP year-end target at 0.8700 – Rabobank

FXstreet.com (Barcelona) - The pair is now transiting session lows on Thursday, dragged by the renewed strength in the sterling and the resilience of the single currency around 1.3140/60. In light of today’s BoE MPC gathering the cross would remain under pressure, as both the Gilt purchases and the refi rate are expected to remain unchanged.

“We would expect any downside in EUR/GBP to be modest. Strong support is offered by the 0.8400 level and in view of the weakness of the domestic UK economic we continue to view sterling as vulnerable in the medium-term. By year end we see risk for EUR/GBP to be trading a little higher in the 0.87 region though near-term we would expect further range trading to dominate”, suggested Jane Foley, Strategist at Rabobank.