What is the outlook for EUR/GBP in the near-term?
Danske Research expects EUR/GBP to stuck in range near-term and to move lower towards 0.0.86 on a Brexit deal in November.
“We expect EUR/GBP to trade within 0.90-0.92 until we get clarification on Brexit. Our base case remains a simple free trade agreement covering goods and we expect the cross to move lower to around 0.86 when a deal is in sight,” Danske notes.
We have lowered our 3M forecast to 0.86 (previously 0.88), as we expect a deal some time in November. We keep our 6-12M forecast at 0.86,” Danske adds.
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