GBP seen picking up pace near-term – Danske Bank

Senior Analyst at Danske Bank Mikael Milhoj sees the British Pound gathering some traction in the next months.

Key Quotes

“The British pound (GBP) has rallied significantly since Trump won the US election”.

“The possibility of a closer economic relationship between the UK and US in the future justifies a lower Brexit risk premium priced on GBP”.

“We could see a further GBP rally in the coming days given the heavy short GBP positioning. We are currently reviewing our EUR/GBP forecast but expect the cross to settle in the 0.83-0.88 range in the near term”.

“We still expect renewed pressure on GBP on 3-6M months in the run-up to when the UK government is likely to trigger Article 50”.