To be more precise, could EUR/GBP be the trade of the summer? UK is just 30 km from continental Europe France. But the gulf between the policies of Bank of England (BOE) and the European Central Bank (ECB) is as wide as ever. ECB has set the interest rates negative in an effort to curb deflationary pressures in Europe. BOE is talking about increasing the interest rates sooner than expected. Top currency analysts believe that an interesting trading opportunity is developing between the Pound and Euro. To be more precise it is this cross EUR/GBP that the currency analysts are now watching keenly to determine if it can be the trade of the year or the summer.
“We think (EURGBP) could be the most interesting trades going forward,” Kathleen Brooks, a research director at FOREX.com told CNBC via email. “The Bank of England is expected to hike years before the ECB.”