Lloyds Forecast GBP/EUR Exchange Rate Recovery Through 2017
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Pound Sterling should stabilise around current levels ahead of a recovery into 2017 according to forecasts contained in Lloyds Bank's latest International Financial Outlook.
Another week, another worst-performer gong for GBP.
While the country's athlete's are picking up gold in Rio, the currency is quite content to snatch the wooden spoon in the G10 standings.
"Sterling was weighed down at the start of the weak by dovish commentary from MPC member McCafferty, and later as the BoE QE programme was restarted, which drove Gilt yields to record lows," explains Kit Juckes, analyst with Societe Generale in London.
However, the under-performance cannot continue forever according to projections released by the UK's high-street giant, Lloyds Bank.
Yes, Lloyds Bank Commercial Banking have released their latest International Financial Outlook publication.
The report contains the bank’s latest thinking on the direction of global interest rates, yields, central bank actions and exchange rates.
The report comes after markets and analysts have had the chance to gauge the UK economy following the Brexit vote of June 23rd.
While no major economic data releases concerning the post-referendum economy are yet available, there have been a good amount of leading indicators to grab onto.
Data has certainly been mixed, and while there is certainly a consensus for lower economic growth and a lower Sterling, there are some who hold a more constructive view.
We reported this week that analysts at Intesa Sanpaolo are holding onto forecasts that see the GBP/EUR exchange rate hovering around current levels for much of the coming year.
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