EUR/GBP remains relatively steady – Danske Bank

Sandeep Kanihama FXStreet Contributor

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.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.