GBP to weaken further against EUR and USD - Danske Bank

According to analysts from Danske Bank, the British Pound will weaken further against the US dollar and also versus the Euro. 

Key Quotes: 

“On FX the British pound (GBP) has plunged. The UK runs one of the largest current account (CA) deficits and the funding of that will be pressured if the UK opts out of the single market. Still, markets may to a significant extent already be priced for a hard Brexit.”

“We believe the British pound will weaken further against both the USD and the EUR, but that will play out over the coming 3-6 months. It will be ‘sell the rumour, buy the fact’ with respect to the UK’s triggering of article 50 and the GBP is likely to strengthen later in 2017.”

“We see EUR/GBP heading towards 0.92 on 3-6M.”