Flash: EUR/GBP risks skewed to upside – RBS

FXstreet.com (New York) - According to the FX Strategy Team at RBS, “The EUR/GBP looks to be battling a more dovish BoE and ECB – comments from a couple of ECB members have left some confusion over forward guidance.”

However, it would seem that guidance is conditional on the economic recovery and there is no specified end-date. “With an August rate cut looking a close call, data and yields will be important over coming weeks. Periphery yields have traded higher amid renewed political and fiscal risks and there could be further upside near term. A heavy week of UK data and events suggests EUR/GBP risks may be skewed modestly to the upside near-term.” the team warns.