Nomura Forecasts GBP/EUR Slide to 1.11 on Starmer Election Risks

Nomura warns GBP/EUR could drop from above 1.15 toward 1.11 over coming months, citing UK political turmoil around PM Starmer, the Mandelson affair, and May 7 local elections, alongside 3.3% inflation and ECB hawkishness versus BoE doubts. This follows EUR/GBP's decisive breakout above 0.8700 resistance on April 21—after five sessions of rejection—to a high of 0.8725 amid initial Starmer scrutiny and CFTC net-short sterling buildup. Eurozone Q1 capital inflows bolster euro resilience, with technical targets now eyeing 0.8750 EUR/GBP equivalent for sustained upside momentum.