EUR/GBP to stabilise in the 0.85-0.90 range – Danske Bank

Research Team at Danske Bank, suggests that in the very short term, they expect GBP volatility to remain high.

Key Quotes

“GBP likely to bounce back somewhat when the dust settles. We expect EUR/GBP to stabilise in the 0.85-0.90 range.

3-12M: Medium and long-term outlook is very uncertain. Flows, growth and relative monetary policy point towards a weaker GBP.

Fundamental valuation models suggest that EUR/GBP at 0.90 for an extended period of time should not be ruled out.”