EUR/GBP further gains in the pipeline – Danske Bank

Chief Analyst at Danske Bank Jakob Christensen expects the European cross to edge higher in the next months.

Key Quotes

“EUR/GBP headed higher on Wednesday following the Bank of England (BoE) Governor Mark Carney’s comments”.

“In our view, there were no major surprises in Carney’s speech but the momentum has turned after the recent rally in GBP”.

“Fundamentally, we expect EUR/GBP to head a lot higher in coming months as the UK’s current account deficit has to adjust while the BoE is likely to cut rates further”.

“Technically, short-term momentum indicators in EUR/GBP have turned, warning of further gains”.