EUR/GBP to trade within the 0.8650 -0.90 range – Danske Bank

EUR/GBP traded higher on Friday and peaked close to 0.8860 as the market was positioned for more positive news from the EU summit about Brexit, points out the research team at Danske Bank.

Key Quotes

“As expected, EU leaders agreed to move Brexit negotiations to phase 2, but comments from both EU officials and UK politicians on Friday and over the weekend support our view that it is too early to reprice a Brexit risk premium as significant difficulties lie ahead in the second phase of negotiations. We still see EUR/GBP within the 0.8650 -0.90 range in coming months. We expect GBP to remain volatile towards year-end and sensitive to Brexit-related news.”