Danske Research discusses EUR/GBP outlook and sees a scope for a move lower towards 0.8600 in the near-term.
"GBP outperformed in the G10 space yesterday supported by a technical break above 1.30 in GBP/USD. While uncertainty related to Brexit remains high, the risk of a ‘no deal’ Brexit appears to be fading, which has improved appetite for GBP. We reckon that the past week’s rally in GBP is fair given that the ‘post Brexit’ outcome distribution for EUR/GBP looks increasingly skewed towards the downside," Danske notes.
"Momentum is strong and with risks skewed towards the downside for EUR, EUR/GBP could still test lower towards 0.86 in the coming days," Danske adds.