EURGBP Sterling Resilience and ECB Policy Are Stabilizers

UBS anticipates the EURGBP pair will decline to 0.86 as the British pound remains resilient despite political challenges. The ECB's hawkish policy stance remains a key stabilizer for the euro.

Key Takeaways

• 1.We expect the EURGBP to drift lower and stabilize around 0.86 over the coming quarters.
• 2.Sterling downside remains limited due to already stretched short positioning.

Table of Contents

• CIO View: EURGBP
• GBP downside limited, with rebound potential
• ECB hiking into a growth slowdown
• CIO Forecast- EURGBP
• EURGBP remains in a tight range
• Investment considerations
• The pound is already facing heavy short positioning
• Appendix

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