EUR/GBP further rangebound expected – Danske Bank

Chief Analyst at Danske Bank Jens Sorensen suggested the European cross could face further consolidation in the near term.

Key Quotes

“For GBP,  today’s labour market report will attract some attention. The market is already pricing in 19bp for a rate hike in May, and our call for unchanged wage growth and unemployment (in line with consensus) is not likely to change BoE pricing”.

“Meanwhile, focus remains on Brexit ahead of the EU summit on 22-23 March. We expect EUR/GBP to trade within the range of 0.8880-0.8925 in the short term, while the wide range of 0.8650-0.90 is likely to remain intact in coming months with the prospects of BoE rate hikes curbing the upside potential”.