Pound Sterling to EUR exchange rate is expected to test the fresh psychologically key level of around 1.17, following recovery from its short plunge below 1.16 earlier in this week.
The bounce back from recent lows fits with analyst’s remarks that the GBP to EUR converter rate is expected to be bought below the level of 1.16, as the GBP to EUR pair appears to be staying into a sideways-orientated trade model.
Some analysts believe that the Pound exchange rate can show a significant upturn from the current level, and they are optimistic that further advance in the Pound to EUR currency converter rate is certainly possible.
Based on Dutch bank ABN Amro examintaion, they told clients that they are increasing their estimated targets on GBP/USD conversion rate.
Danske Bank has recently upgraded their price target forecasts for the Pound Sterling exchange rate amid better than expected economic data, but they also warned investors that the GBP to EUR pair currency rate could fall in the case of higher than expected outcome of Brexit vote.
Economists and analysts have also increased their estimates for the British economy.
However, some bearish traders say that the British Pound to Euro rate is not capable to hold its ground, amid economic concerns and a deficiency of helpful UK data.
Bank of England’s Financial Policy Committee also warned about the Brexit-based economic downturn, which could pressurize Pound to EUR conversion rate.
On the other hand, the European Central Bank’s latest statement from policymakers suggest that they are relaxed with the existing interest rates, signifying less enthusiasm to ease interest rate strategy in the coming days.
Consequently, traders and investors have been optimistic to load back into EUR currency rates, mainly subsequent to the distress coming from the US Fed’s latest decision.