{"id":14338,"date":"2025-04-09T03:30:37","date_gmt":"2025-04-09T03:30:37","guid":{"rendered":"https:\/\/lotayamedia.xyz\/?p=14338"},"modified":"2025-04-09T03:30:37","modified_gmt":"2025-04-09T03:30:37","slug":"ubs-forecast-euro-zone-more-vulnerable-to-us-tariffs-gbp-eur-to-reach-1-19-by-2026","status":"publish","type":"post","link":"https:\/\/lotayamedia.xyz\/?p=14338","title":{"rendered":"UBS Forecast: Euro Zone More Vulnerable to US Tariffs, GBP\/EUR to Reach 1.19 by 2026"},"content":{"rendered":"
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Key Takeaways:<\/strong><\/p>\n

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  • GBP\/EUR exchange rate<\/strong>\u00a0dipped to an\u00a08-month low of 1.1635<\/strong>\u00a0amid trade war fears before recovering slightly to\u00a01.1665<\/strong>.<\/li>\n
  • UBS predicts GBP\/EUR will gradually rise to 1.19 by 2026<\/strong>, supported by\u00a0UK economic resilience<\/strong>\u00a0and\u00a0Bank of England policy<\/strong>.<\/li>\n
  • Eurozone faces greater risk from US tariffs<\/strong>\u00a0(20% on EU vs. 10% on UK), while the\u00a0UK\u2019s services-heavy economy remains less exposed<\/strong>.<\/li>\n
  • Sterling\u2019s volatility remains contained<\/strong>, with\u00a0support near 1.1625<\/strong>\u00a0and resistance at\u00a01.2200<\/strong>.<\/li>\n<\/ul>\n

    GBP\/EUR Exchange Rate Dips Amid Trade War Fears<\/strong><\/h2>\n

    The\u00a0Pound to Euro (GBP\/EUR) exchange rate<\/strong>\u00a0recently plunged to an\u00a08-month low of 1.1635<\/strong>\u00a0as global markets reacted to escalating\u00a0US-China and US-EU trade tensions<\/strong>. However, it has since recovered slightly to\u00a01.1665<\/strong>, with\u00a0UBS forecasting a rebound to 1.19 by 2026<\/strong>.<\/p>\n

    Why Is the Euro More Exposed to US Tariffs Than the UK?<\/strong><\/h3>\n

    UBS analysts highlight that the\u00a0Eurozone economy is more vulnerable<\/strong>\u00a0to\u00a0US tariffs<\/strong>\u00a0than the UK, citing:<\/p>\n

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    • Higher US tariffs on EU goods (20%)<\/strong>\u00a0compared to\u00a0UK imports (10%)<\/strong>.<\/li>\n
    • The\u00a0UK\u2019s larger services sector<\/strong>, which remains\u00a0untargeted by US trade restrictions<\/strong>.<\/li>\n
    • Stronger Bank of England (BoE) monetary policy<\/strong>, which could\u00a0support Sterling<\/strong>\u00a0with higher interest rates.<\/li>\n<\/ul>\n

      Bank of England Policy to Bolster GBP\/EUR<\/strong><\/h3>\n

      UBS expects the\u00a0BoE to maintain a hawkish stance<\/strong>\u00a0due to lingering\u00a0UK inflation risks<\/strong>, which should\u00a0strengthen the Pound<\/strong>\u00a0against the Euro. Additionally,\u00a0higher UK bond yields<\/strong>\u00a0compared to the Eurozone could attract foreign investment, further supporting GBP.<\/p>\n

      GBP\/EUR Forecast: Key Levels to Watch<\/strong><\/h3>\n
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      • Short-term support at 1.1625<\/strong>\u00a0\u2013 A critical floor for Sterling.<\/li>\n
      • Resistance near 1.2200<\/strong>\u00a0\u2013 Selling pressure likely to emerge at higher levels.<\/li>\n
      • Medium-term target of 1.19 by 2026<\/strong>\u00a0\u2013 Driven by\u00a0Eurozone trade risks and UK economic resilience<\/strong>.<\/li>\n<\/ul>\n

        Conclusion: Sterling Set for Gradual Recovery<\/strong><\/h3>\n

        While\u00a0trade war volatility<\/strong>\u00a0has weighed on GBP\/EUR, UBS expects a\u00a0steady recovery<\/strong>\u00a0as the\u00a0UK\u2019s economic structure and monetary policy<\/strong>\u00a0provide stability. Investors should monitor\u00a0US-EU trade developments<\/strong>\u00a0and\u00a0BoE rate decisions<\/strong>\u00a0for further clues on the Pound\u2019s trajectory.<\/p>\n

        Stay updated with the latest GBP\/EUR forecasts and currency market trends.<\/strong><\/p>\n<\/div>\n

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        Key Takeaways: GBP\/EUR exchange rate\u00a0dipped to an\u00a08-month low of 1.1635\u00a0amid trade war fears before recovering slightly to\u00a01.1665. UBS predicts GBP\/EUR …<\/p>\n","protected":false},"author":1,"featured_media":14339,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_title":"","rank_math_description":"","rank_math_focus_keyword":"","rank_math_keywords":"","footnotes":""},"categories":[16],"tags":[],"class_list":["post-14338","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=\/wp\/v2\/posts\/14338","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=\/wp\/v2\/types\/post"}],"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=14338"}],"version-history":[{"count":1,"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=\/wp\/v2\/posts\/14338\/revisions"}],"predecessor-version":[{"id":14340,"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=\/wp\/v2\/posts\/14338\/revisions\/14340"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=\/wp\/v2\/media\/14339"}],"wp:attachment":[{"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14338"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14338"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lotayamedia.xyz\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14338"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}