Rabobank sees sterling features fading, forecasts EUR/GBP at zero.87 close to time period, zero.88 in 6 months

Rabobank warns UK stagflation dangers may stall sterling rally.

Rabobank says that with UK inflation and wage progress nonetheless operating sizzling, even progress figures consistent with forecasts may stoke fears of stagflation and mood investor urge for food for the pound.

The financial institution’s central state of affairs is for the Financial institution of England to ship one other charge minimize in November, a transfer it expects will sap momentum from sterling’s current features. Rabobank forecasts EUR/GBP will hover close to zero.87 over the following one to a few months earlier than drifting towards zero.88 in six months’ time.

This text was written by Aaron Cutchburt at investinglive.com.