EUR/GBP: After BoE, risks still skewed to the upside - Danske Bank
|Today the Bank of England left interest rate unchanged as expected. According to analysts from Danske Bank, the pound is likely to remain volatile and sensitive to Brexit headlines.
Key Quotes:
“EUR/GBP is little changed as the 9-0 vote for an unchanged Bank Rate was widely expected. The UK money market curve is relatively flat, with the next BoE rate hike priced to arrive in November 2019. While this is slightly dovish compared to our call for a hike in May 2019, we think pricing is fair for now – especially given the uncertainty related to Brexit.”
“We expect GBP to remain very volatile and sensitive to Brexit news in coming months and, overall, we still see EUR/GBP risks skewed to the upside ahead of the UK Conservative party’s annual congress, due to start on 30 September.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.