FXStreet (Edinburgh) - According to the research team at BBH, the European cross could drop towards the 0.65 area in the medium term. Key Quotes “Given the underlying fundamental strength of the dollar, long sterling against the euro may be a more efficient way express a favorable assessment of sterling”. “The Bank of England is the next major central bank after the Federal Reserve that is likely to hike rates”. “What the market has come to appreciate is that by the time the BOE may lift interest rates, the Fed may have hiked twice or thrice”. “The euro has carved out a shelf near GBP0.6985. A break signals an immediate test and likely break of the multi-year low set in July near GBP0.6935”. “Over the medium-term, we look for the euro to fall toward GBP0.6500. The GBP0.7020-GBP0.7040 area has been capping upticks recently”. For more information, read our latest forex news.