EUR/GBP Expected to Trade in Range as Pound's Resilience Fades

Rabobank's Senior FX Strategist Jane Foley expects the British Pound (GBP) to trade in a range against the Euro (EUR) over the coming weeks, with a mild upside bias later in the year.

Foley notes that the GBP is currently the top-performing G10 currency on a 1-day view but only middling over longer horizons.

The strategist attributes the pound's resilience to better-than-expected UK economic data released recently, which has led to a description of the economy as 'resilient' through Q2 and into the summer, along with that of the Eurozone.

Rabobank maintains its central view that the Monetary Policy Committee (MPC) will continue to side-step a rate hike this year, which could undermine the pound's value.