EUR/GBP to trade within the range of 0.8880-0.8925 in the short term – Danske Bank

Chief Analyst, Jakob Christensen at Danske Bank, explains that EUR/GBP increased slightly on the back of the higher UK unemployment rate and weak employment growth released yesterday, but the market is still pricing in 20bp for a rate hike in May, and they do not expect today’s UK GDP figures to alter this.

Key Quotes

“For now, key risk factor for GBP remains Brexit ahead of the EU summit on 22-23 March. We expect EUR/GBP to trade within the range of 0.8880-0.8925 in the short term, while the wide range of 0.8650-0.90 is likely to remain intact in coming months with the prospects of BoE rate hikes curbing the upside potential.”