Jens Pedersen, Senior Analyst at Danske Bank, noted the Sterling should be under some pressure in light of the imminent EU Summit.
Key Quotes
“EUR/GBP continues to grind higher as investors are probably taking a more cautious approach on GBP ahead of the EU Summit, which starts today”.
“Although the summit has become less important in terms of Brexit as the clashes between the EU and UK are most likely postponed to the October EU summit, GBP could still be sensitive to Brexit-related comments from the Summit”.
“We still see EUR/GBP within the range of 0.8650-0.8850 near term and tactically, we would consider selling the cross on rallies above 0.885″.
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