Euro/GBP prices have been moving against the US Dollar and against the British Pound recently. The Euro-GBP is now moving against the US Dollar at a significantly higher rate of purchasing power, making it difficult for the Euro/GBP to hold a position against the Dollar.
The European and Japanese economies are expanding at very different rates and they are continuing to grow at different rates. Many economists believe that Japan is in a recession, but a recession is also defined as two consecutive quarters of contraction. The next quarter of contraction for Japan will be even weaker than the previous quarter.
The economies of several countries are currently in recession. The United States has five main economic sectors and all of them are in recession. The last quarter of 2020 was actually the worst quarter in history for US economic growth. A strong recovery is expected for 2020.
The European Central Bank and the Bank of England are working on a way to stabilise the Euro/GBP price, but they are limited by the Bank of England’s trading policy. It does not wish to let inflation rise above its target of 2%. Since the mid-1990s, inflation has risen above the Bank of England’s target, so a higher inflation rate is not in the Bank of England’s interest.
The Euro/GBP price is likely to follow the dollar because there is already a strong relationship between the Euro/GBP and the US Dollar. Any strengthening of the Euro against the US Dollar will force the Dollar to strengthen against the Euro. With the Euro/GBP and the US Dollar acting as a powerful influence on each other, the Euro/GBP will be able to hold a strong relation with the Dollar.
The Euro-Dollar relationship is not strong enough to support a strong relationship between the Euro and the British Pound. In fact, the relationship is weak enough to keep the British Pound from expanding in value relative to the Euro. This means that the Pound has weakened against the Euro. For this reason, the Pound has traded near its all-time low against the Euro, because it is now very difficult to sell a Euro and make a profit.
The strength of the relationship between the Dollar and the Euro is unlikely to change any time soon. It is impossible to predict what the future holds for the relationship between the Euro and the Dollar. However, it is possible to make some predictions based on past experience.
The relationships between the Euro and the US Dollar and the British Pound and the Dollar tend to be weak at times when economic activity is weak. In the current situation, the strength of the Dollar against the Euro is likely to remain weak.
The weakness of the relationship between the Euro and the Dollar has prompted some investors to move their money to the British Pound. However, this move is not likely to have a strong effect on the Euro/GBP price. This is because it is likely that any movement in the Euro/GBP price will only be minimal.
Even if the Euro/GBP price were to move slightly up against the Dollar, it would only be small enough to give the Euro/GBP a small move. Therefore, there is no chance of a big move in the Euro/GBP price from the Dollar. At this point, the strength of the Dollar is unlikely to affect the Euro/GBP price at all.
The strength of the Dollar is a very strong force, but the US Dollar will remain strong. It is impossible to predict what the long-term trend will be. The Euro/GBP price will be influenced by the strength of the Dollar.
If the Dollar continues to weaken, then the Euro/GBP price will continue to move in this direction. If the Dollar moves in the direction of its strength, then the Euro/GBP price will continue to move in this direction.