Danske Research discusses EUR/GBP outlook and maintains the view that risks skewed to the upside in the near-term with 0.8900 a near-term target.
"The Conservative MP James Duddridge told Sky news that he has submitted a letter of no confidence to Theresa May, and focus in the coming days will be whether other MPs follow Duddridge.
A vote of confidence can only be triggered if 15% of Conservative MPs (48 members) write a letter to the chairman of the 1922 committee asking for such a vote. If a vote is triggered, it would of course increase uncertainty and induce a GBP sell-off," Danske notes.
"We expect GBP to remain volatile and sensitive to any Brexit-related news in coming months. We target 0.89 in EUR/GBP near term with risks skewed to the upside," Danske argues.