EUR/GBP risks skewed to the upside – Danske Bank

Piet Christiansen, Senior Analyst at Danske Bank, notes the European cross could still edge higher.

Key Quotes

“The dip in EUR/GBP following the strong UK inflation prints yesterday proved short -lived as expected and the cross ended the day slightly higher”.

“The market is already pricing in a 19bp hike in May and we see limited potential for additional pricing at this early stage. We see risks moderately skewed to the upside for EUR/GBP near term, with Brexit negotiations stuck internally”.

“Strategically, we are bearish EUR/GBP and would consider selling EUR/GBP on rallies above 0.8950”.

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.