Sell EUR/GBP at 0.8695 – Westpac

Sandeep Kanihama FXStreet Contributor

Analysts at Westpac are recommending to sell EUR/GBP cross at 0.8695 for the target price of 0.8375, while maintaining a stop loss of 0.8800.

Key Quotes

“Rationale:

UK election should relieve sudden no deal Brexit concerns and raise potential of breaking the Brexit impasse
Parties are likely to adopt post election expansionary mandates to allow for investment, spending and growth
The election will be an effective poll on current negotiated deal against remaining and/or second referendum
Eurozone is likely to receive further weak data in coming week
EU/Eurozone will look to approve fiscally prudent National budget proposals in November rather than push for any expansion.”

“Risks:

Amendments to the Election Bill could delay the process of achieving a swift election date
Adopting a lowering of the voting age to 16 and including EU nationals could cause the Election Bill to be pulled
Polling reports could shift to suggest a further inconclusive result and another ineffective minority Government
EU data upside surprises
EU nations outline fiscally expansionary or structural reform policies.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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