EUR/GBP seen around 0.8700 in 1-3 month – Danske Bank

Morten Helt, Senior Analyst at Danske Bank, expects further weakness around the Sterling in the short term.

Key Quotes

“We still see potential for further GBP weakness in the near term as the triggering of Article 50 moves closer”.

“We target EUR/GBP at 0.87 in 1-3M but stress that the risk is skewed on the upside relative to our forecasts and we expect the cross to continue to trade with large fluctuations”.

“Indeed, the upcoming presidential election in France is a potential source of EUR weakness but European political uncertainty should weigh only modestly on EUR/GBP ahead of the second Presidential election in France due in May”.