EUR/GBP seen around 0.83 in 12-month – Danske Bank

Pablo Piovano FXStreet

In view of Analysts at Danske Bank, the European cross is expected to drop to the 0.83 region within a year’s view.

Key Quotes

“GBP has been in the hands of the Brexit-deal driven UK cabinet turmoil lately. For GBP, the rising risk of both a soft Brexit (GBP positive) and a ‘no-deal’ Brexit (GBP negative)”.

“We still expect the Bank of England to hike the Bank rate by 25bp to 0.75% in August. This is not fully priced in the market yet (put at 75% probability), so we expect relative interest rates to drive EUR/GBP slightly lower to 0.87 in 1M (previously 0.88)”.

“Longer term, we still expect EUR/GBP eventually to trade lower driven by Brexit clarifications and fundamental valuations. We continue to target EUR/GBP at 0.8650 in 3M, 0.84 in 6M and 0.83 in 12M.

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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