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GBP/EUR now screens as undervalued and potentially primed for a relief rebound after the Budget.

Pound sterling starts today at 1.1334 against the euro, a level that sits noticeably below what many analysts consider fair value based on UK–EU fundamentals.

A new year-end consensus forecast compiled by Pound Sterling Live suggests that although institutional sentiment toward GBP/EUR has softened since mid-year, the pair now screens as undervalued and potentially primed for a relief rebound after the Budget.

"The Chancellor has an opportunity to deliver fiscal reform, yet we expect her to take a route of political expediency which offers short-term relief," says a strategy note from Citi.

The report - which can be requested here - draws on projections from more than

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