EUR/GBP risks further downside – Danske Bank

Senior Analyst at Danske Bank Sverre Holbek believes the European cross could slip back to lower levels in the near term.

Key Quotes

“EUR/GBP once again failed breaking below the 0.87 level yesterday and the cross continues to hover just above this important support level. A clean break below 0.87 could open up for a test of the low end of the broad range at 0.8650”.

“We generally see risk skewed to the downside on today’s series of UK data releases, but do not expect this to alter the market’s expectations of a rate hike from the BoE in May. Tactically, we remain biased towards selling EUR/GBP on rallies”.