FxWirePro medium term outlook: Euro likely to rise to 0.96 against sterling

Sterling is already curving a fresh 31-year low today against the dollar and we believe that it has a lot more to go. We have also called for a test of parity for the euro against the dollar. The call is available here, http://www.econotimes.com/FxWirePro-medium-term-outlook-Euro-may-go-for-a-test-of-parity-against-dollar-231781 .

But that shouldn’t prevent the sterling to weaken against the Euro as an exit will hit the United Kingdom more than it would hurt the European Union. The biggest threat is that the United Kingdom will cease to exist and Scotland and Ireland will part ways so that we will have the Britain alone.

So if Euro to test parity against the dollar, we must be assuming that the sterling will decline more. Have no worries, we are. Here is the link where we called for a parity in sterling/dollar exchange rate, http://www.econotimes.com/FxWirePro-Sterling-likely-to-drop-below-parity-against-dollar-229769

So, how far will the euro rise against the sterling?

At least through 0.96 but the above calls strongly suggest that we may see a parity. The euro is currently trading at 0.847 against the sterling. Key supports for this call stand at 0.82, 0.798 and 0.76.