FxWirePro: Euro is likely to decline 500 pips against pound

Pound had one of its worst times in 2016 when the people of the United Kingdom voted in favor of an exit from the European Union. This year, the UK government is set to trigger Article 50 of the Lisbon Treaty before the end of March but it is unlikely to be very suffering for the pound, especially against the euro.

As a matter of fact, 2017 has the very high possibility that it could become the year when the euro and its union fall. Euro is facing political threats likes of which is never been seen before.

Political parties which support the dis-integration of the European Union, as well as, the single currency area are on the rise, in terms of power. Geert Wilders is set to get most of the votes in the Dutch election, National Front leader Marine Le Pen is set to win the first round of the French Presidency, and the right-wing Alternate for Deutschland (AfD) party is set to enter the parliament for the first time as the third largest party.

These threats are immensely greater than what the United Kingdom faces and we suspect that euro to suffer more against the pound. We forecast for the Euro, which is currently trading at 0.852 against the pound to drop as much as 500 points in the short term to test 0.8 area.