EUR/GBP seen higher near-term – Danske Bank

By FXStreet Chief Analyst at Danske Bank Jakob Christensen expects the European cross to edge higher in the next months mainly due to the bearish note of the sterling.

Key Quotes

“GBP crosses suffered yesterday as Brexit fears gained traction”.

“We stress that given the significant uncertainty surrounding the British EU referendum in June, we see risks skewed to the upside for EUR/GBP in coming months”.

“We expect volatility to remain high and, clearly, EUR/GBP is likely to be very sensitive to news flow, changes in polls, etc. We forecast EUR/GBP at 0.80 in 3M but lower in 6-12M on relative rates, growth and no Brexit (our base case)”.
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Source:: FX Street