GBP poised to remain volatile near term – Danske Bank

Piet Christiansen, Senior Analyst at Danske Bank, stressed the Sterling should remain under pressure on Brexit developments in the near term.

Key Quotes

“EUR/GBP bounced on Friday on comments from the UK Prime minister”.

“Meanwhile, Labour leader Jeremy Corbyn kept the door open for another Brexit referendum saying that he would like a general election rather than a second Brexit referendum but would be ‘bound’ by the decision of members”.

“The Labour Party conference kicked off yesterday and continues until 26 September. The next key event will be the Conservative Party congress starting on 30 September”.

“We expect GBP to remain volatile and very sensitive to Brexit news in coming months. We target 0.89 in 3M, with risks skewed to the upside”.