Arne Rasmussen, Head of FI Research at Danske Bank, gives his views on the BoE and the European cross for the next months.
Key Quotes
“EUR/GBP dropped below 0.8750 on t he hawkish signals from the Bank of England (BoE) yesterday”.
“We stick to our call for one hike in H2 18 and one in 2019 with the next hike likely in August”.
“Near term, a break below 0.8650 would, in our view, require a more pronounced repricing of the BoE’s future rate path, which we do not expect. Hence, we expect EUR/GBP to continue to trade within a range of 0.8650-0.8850 in the coming months”.
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