EUR/GBP expected to gravitate between 0.84 and 0.89 – Danske Bank

Chief Analyst at Danske Bank Arne Rasmussen keeps its constructive view on the European cross in the next months.

Key Quotes

“EUR/GBP has stabilised after a spike early yesterday morning following the news that UK Prime Minister Theresa May now has the green light to start Brexit negotiations”.

“EUR/GBP now trades slightly above our 1-3M target of 0.87 and we are currently revisiting our forecast. As such, we still expect EUR/GBP to continue to trade within the 0.84-0.89 range in the coming three to six months, but while the Brexit risk premium priced on GBP has increased over the past weeks, we continue to see risks tilted to the upside in the near term ahead and after the triggering of Article 50. We expect May to trigger Article 50 in the last week of March (27-30 March)”.