Further weakness expected around GBP – Danske Bank

In light of the recent price action around the Sterling, Senior Analyst at Danske Bank Mikael Milhoj believes EUR/GBP could accelerate its upside in the next months.

Key Quotes

“GBP fell to a seven-week low to the EUR on Friday, as the UK services PMI slipped to its lowest level since September, pointing towards a possible slowing of the UK economy”.

“EUR/GBP rose by 0.8% to 0.8639 and we expect to see further GBP weakness in coming months ahead of Theresa May’s plan to trigger Article 50 by the end of March. We forecast EUR/GBP at 0.87 in 1-3M”.