Euro to Pound Forecast 2026–2028: July Survey Sees EUR/GBP Recovering from One-Year Lows

The article presents a July 2026 survey of major investment banks on EUR/GBP, suggesting the euro may recover modestly against sterling over the next 18 months. EUR/GBP is near 0.8534, around a one-year low, but most banks expect it to rise into the 0.87-0.89 range during 2027, implying some mean reversion after recent pound strength. The outlook is driven mainly by expectations that the Bank of England and European Central Bank will both keep policy relatively restrictive, narrowing the interest-rate gap and limiting further sterling outperformance. While a few banks remain bullish on the pound, the consensus is that the pair is more likely to grind higher than stage a sharp reversal. For markets, the piece signals that sterling’s recent rally may be peaking and that the euro could regain some ground, affecting FX pricing and hedging decisions.