EUR/GBP is seen at 0.86 in 1-month – Danske Bank

Senior Analyst at Danske Bank Jens Pedersen expects GBP to remain under pressure, lifting EUR/GBP to the area of 0.8600 within a month’s view.

Key Quotes

“The GBP weakened heavily with EUR/GBP initially spiking to the highest level since 2014 (to above 0.8380) before settling c.40 pips lower following a dovish statement by BoE governor Carney”.

“We still maintain the view that risks are skewed towards an even weaker GBP over the coming months and we forecast EUR/GBP at 0.86 in 1M”.

“In the Scandies both SEK and NOK are little changed on the day. We think the SEK will trade around current levels but look for strengthening next week after the turn of the quarter will lead to Funds shorting the cross. EUR/DKK has edged slightly higher over the past few days but still trades close to 7.4400”.