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UK virus concerns and a bounce in the EUR recently brought EUR/GBP to the highest level since early March. Despite this recent increase in EUR/GBP, economists at Danske Bank remain bullish on GBP, as they continue to be more positive on the UK compared to EU.

The UK economy is set outperform the euro area this year

“EUR/GBP has increased close to 0.87 since our last update after it briefly went below 0.85. We think this is a bump in the road and remain bullish on GBP, as we are still more upbeat on the UK than on the euro area.”

“Near-term we expect EUR/GBP to trade around the current levels before the cross starts to move lower again. We still forecast EUR/GBP will trade at 0.83 in 12M.”