EUR/GBP faces further upside very near term – Danske Bank

Chief Analyst at Danske Bank Jakob Christensen expects the Sterling to remain under pressure in the next weeks.

Key Quotes

“GBP had a volatile session yesterday with EUR/GBP bouncing above 0.88 on reports that David Davis threatened to quit due to a disagreement with Prime Minister May on the ‘Irish backstop’.

“Price action underscores that the current UK government crisis is likely to keep EUR/GBP risks skewed on the upside ahead of the European Council meeting on 28-29 June where ‘progress’ on the Irish border issue has to be made in order not stall the Brexit process”.

“We target EUR/GBP at 0.88 in 1M and 0.8650 in 3M”.