EUR/GBP seen higher in the next months – Danske Bank

Senior Analyst at Danske Bank Mikael Milhoj suggested that further weakness remains well on the cards for the Sterling.

Key Quotes

“EUR/GBP continued to rise yesterday as markets focused again on the Brexit theme”.

“The cross has now reached our 3M target of 0.87 and we are currently reviewing our forecast. We see potential for further GBP weakness in the coming months as the triggering of article 50, which is expected by the end of March, moves closer”.

“As such, EUR/GBP once again touching 0.90 should not be ruled out if markets price in a hard Brexit scenario, where the UK no longer has access to the single market, as PM Theresa May on Sunday hinted might be a possibility”.