Mikael Milhof, Senior Analyst at Danske Bank, expects any dips in the European cross to be temporary.
Key Quotes
“EUR/GBP is likely to trade a bit heavy ahead of the Bank of England (BoE) rate announcement today”.
“The expected hike is almost fully priced in, and we expect any dip in EUR/GBP to be short-lived. We look for the cross to remain range bound near term with Brexit uncertainty expected to remain a key source of volatility”.
“From a risk/reward perspective, we would look for opportunities to buy EUR/GBP if the cross drops to 0.88 for a short-term rebound towards 0.8950″.
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