Further GBP pullback remains on the cards – Danske Bank

Morten Helt, Senior Analyst at Danske Bank, believes there is room for further weakness around the Sterling.

Key Quotes

“Slower UK GDP growth driven by weaker private consumption growth and weak wage growth supports our view that the Bank of England (BoE) will remain on hold in the coming 12 months”.

“We still think the market’s pricing of the BoE is too optimistic. Hence, relative rates are most likely to be GBP negative, in our view. We still expect EUR/GBP to trade higher in coming months, driven by Brexit uncertainty. We forecast EUR/GBP to trade at 0.87 on 3M”.