It's not hard to see euro downside risks materialising in the wake of the ECB's June decision.
GBP/EUR is underpinned by constructive technicals and Britain's elevated interest rates relative to the eurozone.
GBP/EUR at Risk of ECB Setback
- Category: EUR
The pound rises against the euro into the ECB event, but that sets it up for a pullback in the event of a 'hawkish' outcome.
Pound-to-Euro Week Ahead Forecast: Still Biased Higher Even if Upside Scope is Constrained
- Category: EUR
Week Ahead Forecast: The pound to euro exchange rate trades with a firm bias, although building political risks and an ECB rate hike should conspire with formidable technicals to prevent a breach of 1.16.