OctaFX | OctaFX Forex Broker
Open trading account
Back

EUR/GBP targets 0.86 in 12-month – Danske Bank

Morten Helt, Senior Analyst at Danske Bank, expects the European cross to grind modestly lower to the 0.8600 handle within the next 12 months.

Key Quotes

“In the near term, we expect relative rates, growth, UK politics and Brexit uncertainty to remain EUR/GBP positive. We have lifted our 1M and 3M forecast now targeting EUR/GBP at 0.90 in 1M (0.88) and 0.89 in 3M (0.88). Overall, we still expect EUR/GBP to trade within the 0.8650-0.90 range in coming months with risks skewed to the upside and Brexit uncertainty remaining a source of volatility”.

“Longer term, Brexit negotiations remain the key determinant for GBP and we still see potential for a decline in EUR/GBP driven by possible clarification on Brexit negotiations and valuations. However, with the ECB moving towards an exit as well and as relative growth is set to remain EUR/GBP positive, we see only modest downside potential in the year ahead. We target 0.87 in 6M and 0.86 in 12M”.

EUR/USD treading water around 1.1800

The buying interest around the European currency stays well and sound at the end of the week, with EUR/USD now gravitating around the 1.1800 area. EU
Read more Previous

US stocks weaker as investors assess Russian probe and US tax reform plan

   •  Russian probe weigh on investors’ sentiment.    •  Prospects for tax reforms hold the key. Major US equity indices witnessed a weaker opening
Read more Next
Start livechat