EUR/GBP could drop to 0.8300 in case of Brexit deal – Danske Bank

Pablo Piovano FXStreet

Morten Helt, Senior Analyst at Danske Bank, believes the European cross could retreat to the 0.8300 region in a 3-month horizon.

Key Quotes

“The Bank of England meeting did not cause any significant reaction in EUR/GBP, but the cross broke below 0.88 later yesterday afternoon amid improved Brexit optimism on the back of a report by the Financial Times saying that the EU will explore a compromise on Northern Ireland that would give the UK stronger guarantees to avoid the customs border issue”.

“Brexit will remain key driver and source of volatility for GBP until a deal is reached. In our base case we target EUR/GBP in 0.83 in 3M assuming that a decent Brexit is reached within the time period”.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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