Kirstine Kundby-Nielsen, an analyst at Danske Bank, said that the Bank of England has sent a signal to gradually cut interest rates. The excellent performance of the UK economy, weak growth in the euro area and the return of risk sentiment should continue to push the pound higher against the euro in the short term. This situation is further amplified by the continued tightening of credit spreads. Looking further, the pound may weaken due to weak global economic growth, and the Bank of England may be more inclined to cut interest rates and tighten monetary policy. Danske Bank forecasts that the euro will be 0.83 against the pound in one to three months, slightly lower than the current level, and 0.85 in 12 months.