Danske Research adopts a negative bias on GBP going into the UK Autumn Statement. 

"EUR/GBP has rebounded slightly higher to 0.86 after trading close to 0.8450 over the summer. Political instability has once again faded and with a more pragmatic pick for UK chancellor, fiscal sustainability worries have taken a backseat. However, we are attentive to budget risks ahead of the Autumn Statement. The UK economy has also performed better than expected although the past weeks data releases have been to the weaker side," Danske notes.

"We highlight that the UK economy remains fragile and that we see scope for the significant repricing of the BoE to revert to a larger extent than for the ECB, opening for a move higher in EUR/GBP. We continue to forecast EUR/GBP to move higher from current levels but now see the outlook more balanced," Danske adds.