GBP under pressure, eyes on Brexit talks – Danske Bank

Chief Analyst at Danske Bank Jens Sorensen assessed the recent moves around the Sterling.

Key Quotes

“GBP underperformed in the G4 space and EUR/GBP broke above 0.90 yesterday as risk appetite and weak UK retail sales weighed on the currency”.

“Today, EU leaders will discuss Brexit negotiations at the EU Summit and are likely to conclude that more negotiation rounds are needed before the talks can proceed to the second phase (trade agreements)”.

“GBP has been quite sensitive to negative Brexit news recently, which may be explained by speculative accounts’ net long GBP positioning. From a risk/reward perspective, we would consider selling EUR/GBP if the cross breaks above last week’s high at 0.90331 today”.