Danske Bank: The pound is expected to remain strong against the euro in the near term

ChainCatcher news, Danske Bank analyst Kirstine Kundby-Nielsen stated that the Bank of England has signaled a gradual interest rate cut. The strong performance of the UK economy, weak growth in the Eurozone, and a rebound in risk sentiment are expected to continue to support the GBP/EUR exchange rate in the short term. The ongoing tightening of credit spreads further amplifies this situation. Looking ahead, the pound may weaken due to sluggish global economic growth, and the Bank of England may be more inclined to cut rates and tighten monetary policy. Danske Bank predicts that the euro to pound exchange rate will be 0.83 in one to three months, slightly lower than the current level, and 0.85 in 12 months. (Jin Shi)