EUR/GBP remains relatively steady – Danske Bank
|Valtteri Ahti, chief strategist at Danske Bank, points out that EUR/GBP cross remains relatively steady just below the 0.90 level and especially 0-1M EUR/GBP and GBP/USD vols have plummeted as Brexit uncertainty is expected to drag on.
Key Quotes
“We expect EUR/GBP to remain trapped in the 0.88-09050 range in the short term, which could push volatility on short-dated tenors down further. Meanwhile, pressure on Theresa May continues to increase as Jeremy Corbyn of the UK labour party has now threatened to call for vote of ‘no confidence’ in her following her statement that MPs would not vote on her Brexit deal until the week of 14 January.”
“If triggered, EUR/GBP could be in for a test of 0.91 near term. We still recommend hedging GBP income/assets via bought vanilla options.”
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.