EUR/GBP seen sidelined between 0.8780/0.8925 – Danske Bank

Jakob Christensen, Chief Analyst at Danske Bank, expects the European cross to stick to the rangebound theme in the near term.

Key Quotes

“EUR/GBP increased slightly on the back of the weaker-than-expected UK GDP data released yesterday. In particular, the domestic drivers (private consumption and business investments) disappointed, but the weak GDP print does not change our call that the BoE hikes in May, which is still priced in with an 80% probability in the UK money market”.

“We expect EUR/GBP to trade within the range of 0.8780-0.8925 in the short term, with Brexit as key risk factor ahead of the EU summit on 22-23 March”.