EUR/GBP poised for rangebound between 0.84 and 0.88 – Danske Bank

Senior Analyst at Danske Bank Morten Helt expects the pair to navigate between the 0.84-0.88 range in the next months.

Key Quotes

“EUR/GBP jumped to the 0.85 level – close to where it was trading before the early UK election call last week. The chance of France joining the UK in leaving the EU has now dropped extensively, and we still project the cross higher if the May government resumes power post 8 June”.

“However, as Brexit now has an extra element of uncertainty due to the UK general election, and given that investors are very short GBP, we expect the cross to remain heavy and volatile going into the UK election. Hence, look for lower end of the 0.84 -0.88 range near term”.