Buy the dips in EUR/GBP – Danske Bank

Allan von Mehren, Chief Analyst at Danske Bank, expects the European cross to keep the sideline theme for the time being, recommending at the same time buying occasional dips.

Key Quotes

“GBP gained yesterday on reports that the UK government is preparing to increase its offer for the EU divorce bill from EUR 20bn to EUR 40bn. Meanwhile, political uncertainty in Germany continues weigh on the EUR and to some extend offsetting the negative impact on GBP stemming from political uncertainty in the UK leaving EUR/GBP risks a bit more balanced”.

“As such, we still see EUR/GBP within the 0.8650-0.90 range near term, and tactically we maintain a buy on dips bias”.