EUR/GBP seen sidelined between 0.89-0.90 – Dansker Bank

The European cross should remain gravitating between 0.89 and 0.90 for the time being, suggested Morten Helt, Senior Analyst at Danske Bank.

Key Quotes

“We expect EUR/GBP to remain within the 0.89-0.90 range ahead of the September CPI figures (due on 17 October) and the labour market report (due on 18 October)”.

“From a risk/reward perspective, we see value in selling EUR/GBP above 0.8950 via a bearish seagull, for move towards 0.87 going into the BoE meeting on 2 November”.

“This week, focus remains on the ongoing Brexit negotiations, which end tomorrow, and whether there will be any progress before EU leaders meet to discuss Brexit at a summit next week”.