18 Feb 2015
EUR/GBP might see 0.72 levels over 6-m – Danske
FXStreet (Barcelona) - Analysts at Danske Bank, share the forecast for EUR/GBP, expecting the pair to move towards 0.72 levels over a 6-month view.
Key Quotes
“Fundamentally, the UK economy is expected to continue to recover at a solid pace and we still look for the first hike to arrive in August– but stress that risks are tilted towards a hike later in Q3 or possibly in Q4.”
“If we are correct, the BoE is priced much too dovishly and we see more upside potential in UK rates and look for a lower EUR/GBP in the coming three to six months as markets call for a re-pricing of MPC policy in a more hawkish direction.”
“However, we expect EUR/GBP to be fairly trendless and volatile in the months ahead of the general election on 7 May.”
“We target EUR/GBP at 0.74 in 3M and 0.72 in 6M as downside potential may be counterbalanced by political risks in the coming months.”
“On a 6 to 12 month horizon, we expect EUR/GBP to stabilise and eventually move higher as the eurozone recovers. We target the cross at 0.73 in 12M.”
Key Quotes
“Fundamentally, the UK economy is expected to continue to recover at a solid pace and we still look for the first hike to arrive in August– but stress that risks are tilted towards a hike later in Q3 or possibly in Q4.”
“If we are correct, the BoE is priced much too dovishly and we see more upside potential in UK rates and look for a lower EUR/GBP in the coming three to six months as markets call for a re-pricing of MPC policy in a more hawkish direction.”
“However, we expect EUR/GBP to be fairly trendless and volatile in the months ahead of the general election on 7 May.”
“We target EUR/GBP at 0.74 in 3M and 0.72 in 6M as downside potential may be counterbalanced by political risks in the coming months.”
“On a 6 to 12 month horizon, we expect EUR/GBP to stabilise and eventually move higher as the eurozone recovers. We target the cross at 0.73 in 12M.”