On the crosses

The euro/pound recently hit a new multi-month high, and analysts see room for the euro to continue strengthening against the pound.

“We see risks of further gains in euro/sterling as the ECB keeps tightening to 3.0 percent, producing an unusually narrow gap between the ECB and BOE benchmark rates,” Callow says.

He and other economists saw potential for that cross to hit the 0.7000 level and even move beyond it in the weeks ahead.