The British pound has been rocked by every opinion poll and now awaits the only poll that matters. How can we trade it?
Here is their view, courtesy of eFXnews:
Danske Bank FX Strategy Research outlines 3 scenarios for the outcome of the UK elections on Thursday and the potential target for EUR/GBP for each of them:
1- (Base Case) “We maintain the view that if Theresa May consolidates her majority substantially it would be GBP positive. We are looking for EUR/GBP in a trading range of 0.82-0.8650 in this scenario.
2- If the Conservatives remain in power with an unchanged majority, we expect a relief rally in GBP targeting EUR/GBP at 0.84 post the election. In this scenario we expect EUR/GBP to continue to trade within the current range of 0.84-0.88.
3- If the Conservatives lose their majority, but remain in power (hung parliament), we expect a knee-jerk bounce in EUR/GBP for a possible test of 0.90. We expect EUR/GBP to settle in the 0.84-0.88 range after some time in this scenario,” Danske argues.
For lots more FX trades from major banks, sign up to eFXplus
By signing up to eFXplus via the link above, you are directly supporting Forex Crunch.
Share
