EUR/GBP: Guided mainly by politics - SocGen

In view of Kit Juckes, Research Analyst at Societe Generale, EUR/GBP is looking like major resistance for now after yesterday saw a softish services PMI, the BRC data overnight are soft (-0.4% y/y) and this morning has another poll showing a 1point lead for Conservatives.

Key Quotes

“Any hope that the election result will be clear at a half-decent hour on Thursday night has pretty much vanished. But the currency is well-supported; bears are worn out. We’ll stay around here until Friday morning and pick up the pieces then. Longer term, I still expect to see 0.90-0.95 for EUR/GBP but that will be a function of how the economy performs and the MPC responds.”