According to foreign exchange strategists at RBC Capital, the Euro will likely rise against the Pound in 2023 owing to their pessimistic view on the UK economic outlook.
Being ‘long’ EUR/GBP forms one of RBC Capital’s thematic trades for the coming year as analysts expect further weakness in the Pound amidst a chronic UK economic underperformance, persistent twin deficits and improved demand for Eurozone assets.
“September’s ‘fiscal event’ may have brought the UK imbalances into sharp focus, but they were there before the short-lived policy changes at that time,” says Elsa Lignos, Global Head of FX Strategy at RBC Capital Markets, PoundSterlingLive has reported.
This will also mean that British tourists will find the Balearics slightly more expensive as their holiday money will not go as far as they would have expected.
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It seems terribly unfair for the Balearic government to single out Brits to pay for their elitist irresponsible spending. But that's socialism, apparently.