Sterling Interest rate cuts

R

roadrunner

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Markets are factoring in 2 quarter point interest rate cuts for sterling for this year as opposed to none for the Euro. For the economists out there - does this mean the Euro will further strenghten it`s position against sterling if this is the case?
 
If they've already priced these cuts in I would expect most of this to be reflected in the exchange rate today.
 
I'm expecting the Euro to rise to 1.85 against sterling in the next four or five months, based on these cuts and the weakness in the UK housing and finance markets.
 
I had a guy in from the bank recently who read that it might end as parity at end of year. I`m sure there are many diverse opinions on this out there.
 
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