EUR/GBP faces upside risks in the medium term – Danske Bank
|Aila Mihr, Analyst at Danske Bank, sees the European cross picking up pace later in the year on Brexit conerns.
Key Quotes
“EUR/GBP dropped below 0.88 on Friday after the cross firstly broke below the 200-day moving average at 0.8841 and secondly declined again on comments in the media that the EU is ready to offer the UK a `super-charged' free-trade deal”.
“Brexit optimism has improved and EUR/GBP has dropped nearly 1.5% since the Conservative Party Congress ended on 3 October, as Theresa May managed to leave the congress without any new troubles. Both momentum and the technical outlook – especially after the break below the 200-day moving average – point to further downside in the short term.
“However, we see only little chance that an agreement will be reached before November, suggesting that the latest Brexit optimism quickly could be reversed again”.
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.