Sell EUR/GBP at 0.8695 – Westpac
|Analysts at Westpac are recommending to sell EUR/GBP cross at 0.8695 for the target price of 0.8375, while maintaining a stop loss of 0.8800.
Key Quotes
“Rationale:
- UK election should relieve sudden no deal Brexit concerns and raise potential of breaking the Brexit impasse
- Parties are likely to adopt post election expansionary mandates to allow for investment, spending and growth
- The election will be an effective poll on current negotiated deal against remaining and/or second referendum
- Eurozone is likely to receive further weak data in coming week
- EU/Eurozone will look to approve fiscally prudent National budget proposals in November rather than push for any expansion.”
“Risks:
- Amendments to the Election Bill could delay the process of achieving a swift election date
- Adopting a lowering of the voting age to 16 and including EU nationals could cause the Election Bill to be pulled
- Polling reports could shift to suggest a further inconclusive result and another ineffective minority Government
- EU data upside surprises
- EU nations outline fiscally expansionary or structural reform policies.”
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