19 Aug 2015
EUR/GBP could test 0.72 in 12-month view – Danske Bank
FXStreet (Edinburgh) - Senior Analyst at Danske Bank Morten Helt expects the cross to reach the 0.72 handle in a 12-moonth horizon.
Key Quotes
“As inflation bottoms out and a BoE rate hike moves closer, we expect EUR/GBP to trade gradually lower over the medium term”.
“Consequently, we now think that EUR/GBP is more likely to bottom in Q1 16 rather than during autumn 2015. We have kept our 6M target for EUR/GBP unchanged at 0.69”.
“On a 6-12M horizon, we expect the euro to stabilise and eventually reverse some of its losses supported by improved inflation and growth outlook for the euro zone”.
“Furthermore, fiscal consolidation and political risks in the UK (EU referendum) are likely to weigh increasingly on GBP next year. We have thus raised our 12M target to 0.72 from 0.71”.
Key Quotes
“As inflation bottoms out and a BoE rate hike moves closer, we expect EUR/GBP to trade gradually lower over the medium term”.
“Consequently, we now think that EUR/GBP is more likely to bottom in Q1 16 rather than during autumn 2015. We have kept our 6M target for EUR/GBP unchanged at 0.69”.
“On a 6-12M horizon, we expect the euro to stabilise and eventually reverse some of its losses supported by improved inflation and growth outlook for the euro zone”.
“Furthermore, fiscal consolidation and political risks in the UK (EU referendum) are likely to weigh increasingly on GBP next year. We have thus raised our 12M target to 0.72 from 0.71”.