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Nov 27 - 11:00 AM
EUR/GBP: Risks Still Skewed To The Upside N-Term - Danske
First appeared on eFXplus on Nov 27 - 09:06 AM

Danske Research discusses EUR/GBP outlook and maintains a tactical bullish view in the near-term, and a strategic bearish view in the medium- to long-term. 

"EUR/GBP has been very stagnant around the 0.8850 level since the EU approved the Brexit deal. Yet, the vote in the UK House of Commons remains a big hurdle and the path towards Brexit will be very uneven. Hence, we expect GBP to remain volatile with risk skewed to the upside for EUR/GBP near term," Danske argues.

"We argued that a 'Brexit corrected' EUR/GBP fair value estimate is around 0.82 (previously 0.83), suggesting that our 6-12M target for the cross at 0.83 could be a bit conservative in terms of GBP appreciation potential if (as we still expect in our main scenario) we end up with a decent Brexit," Danske adds. 

Source:
Danske Research/Market Commentary

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