Heavy tone persists around EUR/GBP – TDS

FXStreet (Edinburgh) - Strategists at TD Securities expect the European cross to grind lower in the next months.

Key Quotes

Cable found support overnight just below 1.5650”.

“The pullback was a little deeper than we had hoped, but we view that more as a function of poor summertime liquidity than a reflection of fundamental value”.

“Similarly, EURGBP continues to trade with a heavy tone and we think we may be heading to fresh lows for this cycle over in coming days”.

“Tomorrow’s UK retail sales reading will be an important driver of near-term direction”.

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