Morten Helt, Senior Analyst at Danske Bank, expects the European cross to grind lower towards the 0.84 area in the medium term. Key Quotes “Given that inflation is slightly lower and the unemployment rate slightly higher than projected in May, the probability of a rate hike in August has declined slightly. Hence, while we have kept our forecast unchanged we stress that risks are skewed to the upside relative to our 1M and 3M forecast at 0.88 and 0.8650, respectively”. “Longer term, Brexit still remains a key driver for GBP, and while uncertainty remains high, we still expect EUR/GBP eventually to trade lower driven by Brexit clarifications and fundamental valuations. The turn in capital flows and FDI flows back into the UK, as indicated in the latest balance of payment data, suggest that a key headwind to GBP seen in Brexit is reversing, supporting the case for additional GBP appreciation over the medium term. We target EUR/GBP at 0.84 in 6M and 0.83 in 12M”. FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next US: Trade war against China – Nomura FX Street 3 years Morten Helt, Senior Analyst at Danske Bank, expects the European cross to grind lower towards the 0.84 area in the medium term. Key Quotes "Given that inflation is slightly lower and the unemployment rate slightly higher than projected in May, the probability of a rate hike in August has declined slightly. Hence, while we have kept our forecast unchanged we stress that risks are skewed to the upside relative to our 1M and 3M forecast at 0.88 and 0.8650, respectively". "Longer term, Brexit still remains a key driver for GBP, and while uncertainty remains high, we still expect EUR/GBP eventually… Top Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
