Taking stock of the European G10 currencies

With most European G10 central banks now at, or very close to, the ends of their tightening cycles, this note examines where the European G10 currencies stand and how we see the outlook for the main euro cross-rates. In short, we think the Swiss franc will remain strong against the euro, while the Scandinavian currencies will eventually bounce back. We also believe sterling’s recent fall has further to run, and that it will prove the underperformer among the European G10 currencies over the year or so.

In view of the wider interest, we are sending this FX Markets Update to clients of the Europe Economics service.