EUR/GBP could extend the upside near term – Danske Bank

Jens Sorensen, Chief Analyst at Danske Bank, believes there is still chance for a continuation of the up move in the European cross.

Key Quotes

“EUR/GBP bounced to 0.9090 yesterday driven by the rally in EUR/USD”.

“Political risk premium on the GBP is likely to remain high in the coming weeks and given the current softness in the USD, it too early to call the top in EUR/GBP yet, in our view”.

“Political news related to Brexit is likely to remain a key source of volatility and directional for the GBP near term and the next big political event is likely to be the UK Conservative Party’s annual congress, which starts on 30 September”.