29 Apr 2015
EUR/GBP: sustained sterling gains unlikely – KBC
FXStreet (Barcelona) - According to KBC Bank, although EUR/GBP saw a break from its 0.7150-0.7400 range, any sustained gains in GBP is unlikely due to election uncertainty.
Key Quotes
“Of late EUR/GBP was locked in a sideways range in the 0.7150/0.7400 area. The negative impact of the election uncertainty on sterling eased of late.”
“Last week sterling broke temporary out of the established ST range (0.7150 area) on positive BoE minutes. This test is still ongoing.”
“Sentiment on sterling is fairly constructive, but we maintain the view that further sustained sterling gains will be difficult ahead of the elections.”
Key Quotes
“Of late EUR/GBP was locked in a sideways range in the 0.7150/0.7400 area. The negative impact of the election uncertainty on sterling eased of late.”
“Last week sterling broke temporary out of the established ST range (0.7150 area) on positive BoE minutes. This test is still ongoing.”
“Sentiment on sterling is fairly constructive, but we maintain the view that further sustained sterling gains will be difficult ahead of the elections.”