The “Brexit cross” has been looking for a new direction amid the Conservative contest and worries about Europe. What’s next?
Here is their view, courtesy of eFXdata:
TD Research discusses EUR/GBP outlook and adopts a buy-on-dips strategy.
“The UK’s macro backdrop remains mixed and volatile, but some MPC members have broadcast a fairly hawkish message to investors this week. These voices may grow more vocal if growth rebounds. Strategically, sterling still has some difficult days ahead of it as political concerns dominate,” TD notes.
Tactically, however, we think EURGBP may struggle to push much higher without a near-term pullback. That would, we think, provide a dip to buy, however,” TD adds.
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