Further downside pressure lies ahead for GBP – Danske Bank

Pablo Piovano FXStreet

According to Jens Sorensen, Chief Analyst at Danske Bank, there is no signs of a relief for British Pound at least in the near term.

Key Quotes

“GBP stabilised somewhat yesterday and EUR/GBP fell back to just below the 0.90 level. The move lower in EUR/GBP was mainly driven by the downward pressure on EUR/USD though, and we still think it is too early to call for a stabilisation in GBP risk premium”.

“Market pricing of future BoE rate hikes is still a bit on the hawkish side, in our view, suggesting that it would be difficult to justify a strong rally in GBP driven by strong data and higher interest rates in the UK in the short term”.

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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