Chief Analyst at Danske Bank Christin Tuxen recommended selling occasional bullish attempts in the European cross.
Key Quotes
“EUR/GBP has hovered above 0.88 since the BoE meeting last week. With an August rate hike still in sight in our view, we see relative interest rates as neutral for EUR/GBP for now, but expect GBP to eventually gain support from the rate channel”.
“We target 0.88 in 1M and 0.8650 in 3M. Strategically, we are short EUR/GBP as one of our FX Top Trades for 2018 via a bought put spread and we would consider adding to this position on rallies above 0.8850″.
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