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ING: GBP/EUR Exchange Rate Forecast At 1.1365 As Multiple BoE Rate Cuts Realistic
Currency analysts at ING expect interest rate cuts will undermine the Pound with the Pound to Euro (GBP/EUR) exchange rate weakening to 1.1365 on a 6-month view. GBP/EUR failed to break above the key 1.1765 level in February and March while rallies since then have fallen short of this level. ING considers that this resistance will continue to hold with the pair dominated by downside risks and uncertainty surrounds the timing of losses rather than direction. ING expects that the Pound will weaken as a decline in services-sector inflation triggers expectations of Bank of England (BoE) interest rate cuts. The bank sees ... (full story)