EUR/GBP: Between risk sentiment and Brexit, 1-3M target at 0.90 – Danske Bank

According to analysts from Danske Bank the EUR/GBP pair remains caught in the middle of risk sentiment and Brexit woes. They continue to expect EUR/GBP to trade around 0.90 in 1-3 months.

Key Quotes: 

“GBP remains caught in the middle of risk sentiment and Brexit. GBP strengthens as risk sentiment improves, but lack of Brexit progress pulls in the other direction. We still expect EUR/GBP to trade around 0.90 in 1-3M and think the cross may go as high as 0.92 if investors really begin to reprice the current Brexit risk premium.”

“As our base case remains a simple free trade agreement in the autumn, we expect the cross to move down to 0.86 in 6-12M.”