According to Senior Analyst at Danske Bank Mikael Milhoj, the European cross still eyes a probable test of the 0.90 handle.
Key Quotes
“The apparent breakthrough on Brexit negotiations sent GBP stronger yesterday afternoon, with EUR/GBP testing April lows below 0.8660 as also the Bank of England was priced slightly more hawkishly”.
“However, we think there are now significant upside risks in the cross, as deal optimism could fade once again, reminding us that any deal still needs parliament approval. This was likely also the reason why EUR/GBP crawled back above 0.87 late last night. The discussions on the Brexit deal could potentially send EUR/GBP back for a revisit of 0.90″.
Share
