{"id":20771,"date":"2025-12-27T12:10:35","date_gmt":"2025-12-27T12:10:35","guid":{"rendered":"https:\/\/lotayamedia.xyz\/?page_id=20771"},"modified":"2025-12-27T12:10:35","modified_gmt":"2025-12-27T12:10:35","slug":"ubs-forecast-euro-zone-more-vulnerable-to-us-tariffs-gbp-eur-to-reach-1-19-by-2026-6","status":"publish","type":"page","link":"https:\/\/lotayamedia.xyz\/?page_id=20771","title":{"rendered":"UBS Forecast: Euro Zone More Vulnerable to US Tariffs, GBP\/EUR to Reach 1.19 by 2026"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/lotayamedia.xyz\/wp-content\/uploads\/2025\/12\/h-4.jpg\" alt=\"\" width=\"610\" height=\"287\" class=\"alignnone size-full wp-image-20772\" srcset=\"https:\/\/lotayamedia.xyz\/wp-content\/uploads\/2025\/12\/h-4.jpg 610w, https:\/\/lotayamedia.xyz\/wp-content\/uploads\/2025\/12\/h-4-300x141.jpg 300w\" sizes=\"auto, (max-width: 610px) 100vw, 610px\" \/><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/lotayamedia.xyz\/wp-content\/uploads\/2025\/12\/\u1042\u1042\u1042\u1042-5.png\" alt=\"\" width=\"2560\" height=\"517\" class=\"alignnone size-full wp-image-20460\" srcset=\"https:\/\/lotayamedia.xyz\/wp-content\/uploads\/2025\/12\/\u1042\u1042\u1042\u1042-5.png 2560w, https:\/\/lotayamedia.xyz\/wp-content\/uploads\/2025\/12\/\u1042\u1042\u1042\u1042-5-300x61.png 300w, https:\/\/lotayamedia.xyz\/wp-content\/uploads\/2025\/12\/\u1042\u1042\u1042\u1042-5-1024x207.png 1024w, https:\/\/lotayamedia.xyz\/wp-content\/uploads\/2025\/12\/\u1042\u1042\u1042\u1042-5-768x155.png 768w, https:\/\/lotayamedia.xyz\/wp-content\/uploads\/2025\/12\/\u1042\u1042\u1042\u1042-5-1536x310.png 1536w, https:\/\/lotayamedia.xyz\/wp-content\/uploads\/2025\/12\/\u1042\u1042\u1042\u1042-5-2048x414.png 2048w\" sizes=\"auto, (max-width: 2560px) 100vw, 2560px\" \/><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/lotayamedia.xyz\/wp-content\/uploads\/2025\/12\/1111-5-scaled.jpg\" alt=\"\" width=\"2560\" height=\"1600\" class=\"alignnone size-full wp-image-20459\" srcset=\"https:\/\/lotayamedia.xyz\/wp-content\/uploads\/2025\/12\/1111-5-scaled.jpg 2560w, https:\/\/lotayamedia.xyz\/wp-content\/uploads\/2025\/12\/1111-5-300x188.jpg 300w, https:\/\/lotayamedia.xyz\/wp-content\/uploads\/2025\/12\/1111-5-1024x640.jpg 1024w, https:\/\/lotayamedia.xyz\/wp-content\/uploads\/2025\/12\/1111-5-768x480.jpg 768w, https:\/\/lotayamedia.xyz\/wp-content\/uploads\/2025\/12\/1111-5-1536x960.jpg 1536w, https:\/\/lotayamedia.xyz\/wp-content\/uploads\/2025\/12\/1111-5-2048x1280.jpg 2048w\" sizes=\"auto, (max-width: 2560px) 100vw, 2560px\" \/><br \/>\nGBP\/EUR Exchange Rate Dips Amid Trade War Fears<br \/>\nThe Pound to Euro (GBP\/EUR) exchange rate recently plunged to an 8-month low of 1.1635 as global markets reacted to escalating US-China and US-EU trade tensions. However, it has since recovered slightly to 1.1665, with UBS forecasting a rebound to 1.19 by 2026.<\/p>\n<p>Why Is the Euro More Exposed to US Tariffs Than the UK?<br \/>\nUBS analysts highlight that the Eurozone economy is more vulnerable to US tariffs than the UK, citing:<\/p>\n<p>Higher US tariffs on EU goods (20%) compared to UK imports (10%).<\/p>\n<p>The UK\u2019s larger services sector, which remains untargeted by US trade restrictions.<\/p>\n<p>Stronger Bank of England (BoE) monetary policy, which could support Sterling with higher interest rates.<\/p>\n<p>Bank of England Policy to Bolster GBP\/EUR<br \/>\nUBS expects the BoE to maintain a hawkish stance due to lingering UK inflation risks, which should strengthen the Pound against the Euro. Additionally, higher UK bond yields compared to the Eurozone could attract foreign investment, further supporting GBP.<\/p>\n<p>GBP\/EUR Forecast: Key Levels to Watch<br \/>\nShort-term support at 1.1625 \u2013 A critical floor for Sterling.<\/p>\n<p>Resistance near 1.2200 \u2013 Selling pressure likely to emerge at higher levels.<\/p>\n<p>Medium-term target of 1.19 by 2026 \u2013 Driven by Eurozone trade risks and UK economic resilience.<\/p>\n<p>Conclusion: Sterling Set for Gradual Recovery<br \/>\nWhile trade war volatility has weighed on GBP\/EUR, UBS expects a steady recovery as the UK\u2019s economic structure and monetary policy provide stability. Investors should monitor US-EU trade developments and BoE rate decisions for further clues on the Pound\u2019s trajectory.<br \/>\n<iframe loading=\"lazy\" width=\"795\" height=\"447\" src=\"https:\/\/www.youtube.com\/embed\/CDMOr1O4Nd0\" title=\"\u1014\u1031\u1021\u102d\u1019\u103a\u1019\u103e\u102c \u101a\u1031\u102c\u1004\u103a\u101c\u102d\u102f\u1010\u1031\u102c\u1004\u103a\u1005\u102d\u102f\u1000\u103a\u1019\u1011\u102c\u1038\u101e\u1004\u1037\u103a\u1010\u1032\u1037\u1002\u1019\u102f\u1014\u103a\u1038\u1015\u1004\u103a\u1019\u103b\u102c\u1038 \u1005\u102d\u102f\u1000\u103a\u1011\u102c\u1038\u1019\u102d\u101b\u1004\u103a\u1021\u1019\u103c\u1014\u103a\u1014\u103e\u102f\u1010\u103a\u1015\u1005\u103a\u1015\u102b\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n","protected":false},"excerpt":{"rendered":"<p>GBP\/EUR Exchange Rate Dips Amid Trade War Fears The Pound to Euro (GBP\/EUR) exchange rate recently plunged to an 8-month &#8230;<\/p>\n","protected":false},"author":1,"featured_media":20463,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"rank_math_title":"","rank_math_description":"","rank_math_focus_keyword":"","rank_math_keywords":"","footnotes":""},"class_list":["post-20771","page","type-page","status-publish","has-post-thumbnail","hentry"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=\/wp\/v2\/pages\/20771","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=20771"}],"version-history":[{"count":1,"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=\/wp\/v2\/pages\/20771\/revisions"}],"predecessor-version":[{"id":20773,"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=\/wp\/v2\/pages\/20771\/revisions\/20773"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=\/wp\/v2\/media\/20463"}],"wp:attachment":[{"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=20771"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}