EUR/GBP signals further rangebound medium term – Danske Bank

Morten Helt, Senior Analyst at Danske Bank, sees the European cross trading within 0.84 and 0.88 in the next months.

Key Quotes

“Over the medium-term horizon, we still expect EUR/GBP to remain caught within the range of 0.84-0.88 but the cross to continue to trade with large fluctuations within the range”.

“We target EUR/GBP at 0.86 on a 6M-12M horizon, reflecting our expectation of the GBP stabilising somewhat in the slightly longer term on the attractive valuation of GBP-denominated assets, given the undervaluation of the UK currency”.