EUR/GBP signals further rangebound medium term – Danske Bank

Morten Helt, Senior Analyst at Danske Bank, sees the European cross trading within 0.84 and 0.88 in the next months.

Key Quotes

“Over the medium-term horizon, we still expect EUR/GBP to remain caught within the range of 0.84-0.88 but the cross to continue to trade with large fluctuations within the range”.

“We target EUR/GBP at 0.86 on a 6M-12M horizon, reflecting our expectation of the GBP stabilising somewhat in the slightly longer term on the attractive valuation of GBP-denominated assets, given the undervaluation of the UK currency”.

“Any turning point for the British currency would probably have to be driven by reduced uncertainty about the future agreement between the UK and the EU, which could entice foreign investors back to Britain. This could potentially take EUR/GBP down towards its fundamental equilibrium in coming years”.

 

1 Week
Avg Forecast 0.8620
0.0%100.0%40.0%0-1001020304050607080901001100
  • 40% Bullish
  • 60% Bearish
  • 0% Sideways
Bias Bearish
1 Month
Avg Forecast 0.8702
100.0%54.0%27.0%020304050607080901000
  • 27% Bullish
  • 27% Bearish
  • 45% Sideways
Bias Sideways
1 Quarter
Avg Forecast 0.8692
100.0%61.0%38.0%04050607080901000
  • 38% Bullish
  • 23% Bearish
  • 38% Sideways
Bias Bullish

 

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 securities. 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 Forex 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.