Go short EUR/GBP amid Brexit hopes, effective UK’s fiscal policy – Goldman Sachs

In their latest client note, analysts at Goldman Sachs recommend going short on the EUR/GBP cross amid increased expectations of the Brexit resolution.

Key Quotes:

“Go short EUR/GBP with target 0.82 and stop at 0.88.

Reasons -

Progress towards Brexit resolution.

Higher degree of confidence on the UK's fiscal policy than almost anywhere else.

Both major parties are effectively committed to higher government spending.

However, near-term risk is a hung Parliament which would extend the Brexit uncertainty further and may even prompt BoE rate cuts ahead.”