EUR/GBP has been racing towards 0.8500, lowest since August. Economists at MUFG Bank analyze the pair’s outlook.

Scope for further GBP strength versus EUR 

We continue to hold a USD bullish bias and if GBP is to respond to a less dovish than expected BoE policy update, we see scope for EUR/GBP to extend the current move to the downside. 

EUR/GBP is approaching the 2023 low of 0.8493 and a break of that level should open up a more rapid move back to the 0.8400 level that last traded in August 2022.