EUR/GBP faces upside risks – Danske Bank

Piet Christiansen, Senior Analyst at Danske Bank, sees the European cross picking up extra pace in the near term horizon.

Key Quotes

“EUR/GBP bounced back above 0.88 yesterday on the back of weak production and GDP data, which indeed casts doubt on the potential economic rebound in Q2 as indicated by last week’s PMIs”.

“Brexit and UK politics will be a key driver today given the House of Commons’ debate and vote on the House of Lords’ amendments to the EU withdrawal bill. We still see risks skewed on the upside for EUR/GBP near term amid political uncertainty”.

“Technically, a break of the 200-day moving average line at 0.88344 could be a short-term bullish signal”.