EUR/GBP all eyes on UK elections today – Danske Bank

In view of Chief Analyst at Danske Bank Allan von Mehren, the European cross should stay under pressure in light of today’s UK general elections.

Key Quotes

“The narrowing Tory-Labour gap has caused momentum to turn more bearish GBP ahead of Election Day”.

“We maintain the view that if Theresa May consolidates her majority substantially it would be GBP positive”.

“We are looking for EUR/GBP in a trading range of 0.82-0.8650 in this – still our main – scenario”.

“However, if the Conservatives lose their majority but remain in power (hung parliament), we expect a knee-jerk bounce in EUR/GBP for a possible test of 0.90. We expect EUR/GBP to settle in the 0.84-0.88 range after some time in this scenario”.