Euro Suffers Double Blow as Oil Prices Soar and BoE Expectations Rise

The Euro has taken another hit against the British Pound, weighed down by rising oil prices. Brent Oil prices have returned to levels near $83.00, a 6.5% increase from last week's lows.

According to analysts at Rabobank, this upward trend in oil prices is just one factor contributing to the Euro's decline against the Pound. They also point to 'a re-pricing in policy expectations towards steady policy from the BoE this year combined with the prospect of nervousness ahead of the October budget' as a reason for the pound's strength.

Despite the challenges, Rabobank remains bullish on the Euro, predicting that it will continue to outperform the Pound. They recommend 'buying EUR/GBP on dips to the 0.8550 area,' with a potential upside if the currency breaks above its recent high of 0.8588.