EUR/GBP risks still points upwards – Danske Bank

Christin Tuxen, Chief Analyst at Danske Bank, assessed the recent activity around the Sterling.

Key Quotes

“EUR/GBP climbed back above 0.90 yesterday supported by the negative surprise in the UK manufacturing PMI, which fell to the lowest level since summer 2016, and an overall muted appetite for GBP”.

“We still see EUR/GBP risks skewed to the upside ahead of the UK Conservative Party’s Annual Congress, which starts on 30 September, and expect volatility to remain in the coming months as the Brexit ‘endgame’ approaches”.

“Longer term, we remain bearish EUR/GBP on Brexit clarifications and valuations, but stress that timing of a break lower in EUR/GBP is difficult to predict”.