According to Jinshi, Rabobank said in a report that the pound is likely to continue to outperform the euro in the coming months. This is due to the Bank of England's cautious attitude towards interest rate cuts.

The bank added that October could be a tough month for both currencies. The UK budget on Oct. 30 could be a headwind for the pound as the prospect of the government raising taxes to address its dire public finances could worry potential investors.

The euro could also face volatility amid speculation the European Central Bank could cut interest rates in October, while France's budget woes could also weigh on the single currency in the coming weeks.