UBS Predicts Downside for EUR/JPY and EUR/GBP Amid Upcoming Economic Data
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UBS has indicated that both the EUR/JPY and EUR/GBP currency pairs are likely to experience downside pressure based on upcoming economic data.
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For the EUR/JPY pair, the Japanese Yen has been volatile due to recent political changes and economic data from Japan. Upcoming inflation data and other economic reports could further influence the pair. The ECB reference exchange rate for EUR/JPY on December 11, 2024, was 160.35, but UBS's analysis suggests that better-than-expected economic data for Japan could strengthen the Yen, thereby putting downward pressure on EUR/JPY.Regarding the EUR/GBP pair, UBS has noted that the pair is currently trading at a two-year low, supported by political uncertainty in France. The British Pound Sterling is expected to strengthen against the Euro, with forecasts suggesting a price of 0.85604 by the end of the year. The average ECB reference exchange rate for EUR/GBP on December 11, 2024, was 0.84834, but UBS's analysis indicates that further economic data from the UK and political developments could lead to additional downside for the EUR/GBP pair.In summary, both the EUR/JPY and EUR/GBP pairs are expected to see downside movements based on upcoming economic data, with the Japanese Yen and British Pound Sterling potentially gaining strength against the Euro.
