EUR/GBP faces upside risks near term – Danske Bank

Mikael Milhoj, Senior Analyst at Danske Bank, sees the European cross facing upside risks in the very near term.

Key Quotes

“Yesterday, EUR/GBP dropped slightly on Donald Tusk’s comments. In our view, however, there were no surprises in the EU’s stance on Brexit, but it illustrates how the Brexit negotiations will continue to be source of volatility”.

“We still see EUR/GBP risks skewed to the upside on the ECB meeting tomorrow. 0.8982 is the key level to watch out for on the upside. A break above this level could open up for a test of 0.90. The strong rhetoric and the very different views on Brexit between the UK and EU are part of the game and fully expected at this stage”.

“Medium and long-term investors should look for opportunities to sell EUR/GBP on rallies”.