Christin Tuxen, chief analyst at Danske Bank, points out that they have lifted their EUR/GBP forecast from 0.86 to 0.90 and expect a higher trading range of 0.86 (in the event of renewed optimism on Brexit) to 0.91 (further weakening of data and worsening of sentiment on Brexit).
Key Quotes
“In the coming months, (1) we are neutral to somewhat positive on politics but worry that (2) global appetite for credit-like risk will continue to worsen, (3) noticing that UK macro is now surprising on the downside and (4) that ECB passiveness is leading to broad EUR strength. In our view, factors 2-4 are likely to weigh on EUR/GBP.”
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