EUR/GBP could edge higher on BoE – Danske Bank

Chief Analyst at Danske Bank Pernille Henneberg sees some upside potential for the European cross on a less-hawkish-than-expected BoE.

Key Quotes

“With the BoE set to publish an IR that will likely to adopt a less hawkish tone, the drop in EUR/GBP in recent days could come to a halt as it should emphasise that rate hikes are far off in the UK”.

“Separately, note that we expect to see GBP markets price in a larger risk premium on sterling ahead of the general election in June”.