In their latest client note, analysts at Goldman Sachs recommend going short on the EUR/GBP cross amid increased expectations of the Brexit resolution.
Key Quotes:
“Go short EUR/GBP with target 0.82 and stop at 0.88.
Reasons –
Progress towards Brexit resolution.
Higher degree of confidence on the UK’s fiscal policy than almost anywhere else.
Both major parties are effectively committed to higher government spending.
However, near-term risk is a hung Parliament which would extend the Brexit uncertainty further and may even prompt BoE rate cuts ahead.”