Societe Generale Research flags a scope for EUR/GBP to fall towards 0.85, and awaits a meaningful dip in AUD/USD to buy.
"We think EUR/GBP should fall towards 0.85 over time and GBP/USD will be trading in the 1.40s later this year," SocGen notes.
"The economic winners in the pandemic, in terms of how growth forecasts have moved, are the US and Australia. Australia is also the G10 economy where there has been the biggest upgrade in the last three months. The AUD has had a good run but one days when it is lower thanks to concerns about its relationship with China, we would look to buy into dips. Partly because of growth but also because the commodity price rally is showing no sign of abating," SocGen adds.