Further GBP pullback remains on the cards – Danske Bank

Pablo Piovano FXStreet

Morten Helt, Senior Analyst at Danske Bank, believes there is room for further weakness around the Sterling.

Key Quotes

“Slower UK GDP growth driven by weaker private consumption growth and weak wage growth supports our view that the Bank of England (BoE) will remain on hold in the coming 12 months”.

“We still think the market’s pricing of the BoE is too optimistic. Hence, relative rates are most likely to be GBP negative, in our view. We still expect EUR/GBP to trade higher in coming months, driven by Brexit uncertainty. We forecast EUR/GBP to trade at 0.87 on 3M”.

1 Week
1 Month
1 Quarter

1 Week

Avg Forecast 0.8620

50% Bullish
33% Bearish
17% Sideways

Bias Bullish

1 Month

Avg Forecast 0.8689

62% Bullish
38% Bearish
0% Sideways

Bias Bullish

1 Quarter

Avg Forecast 0.8756

64% Bullish
14% Bearish
21% Sideways

Bias Bullish

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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