3 May 2016
EUR/GBP still under pressure – Danske Bank
Chief Analyst Arne Rasmussen at Danske Bank expects the cross to come under renewed pressure in the short term.
Key Quotes
“In recent weeks, EUR/GBP has come off sharply as the Brexit risk premium has been reduced”.
“However, we note that recent polls have been more mixed, which should cap GBP strength”.
“We estimate that the Brexit risk premium is now only 3.5% in EUR/GBP falling from 5.8% in early April”.
“Note that we have the mayoral and regional elections on Thursday. With that out of the way, the campaign for the EU referendum may gain further traction”.
Key Quotes
“In recent weeks, EUR/GBP has come off sharply as the Brexit risk premium has been reduced”.
“However, we note that recent polls have been more mixed, which should cap GBP strength”.
“We estimate that the Brexit risk premium is now only 3.5% in EUR/GBP falling from 5.8% in early April”.
“Note that we have the mayoral and regional elections on Thursday. With that out of the way, the campaign for the EU referendum may gain further traction”.