EUR/GBP cautious ahead of BoE – Danske Bank

Mikael Milhof, Senior Analyst at Danske Bank, expects any dips in the European cross to be temporary.

Key Quotes

“EUR/GBP is likely to trade a bit heavy ahead of the Bank of England (BoE) rate announcement today”.

“The expected hike is almost fully priced in, and we expect any dip in EUR/GBP to be short-lived. We look for the cross to remain range bound near term with Brexit uncertainty expected to remain a key source of volatility”.

“From a risk/reward perspective, we would look for opportunities to buy EUR/GBP if the cross drops to 0.88 for a short-term rebound towards 0.8950”.