GBP rallies appear short-lived – Danske Bank

Chief Analyst at Danske Bank Christin Tuxen gave her views on the prospects for the Sterling in the short term horizon.

Key Quotes

“EUR/GBP continues to trade within a narrow range of 0.875-0.88 as the cross remains under pressure from the termination of EUR/USD longs”.

“Focus today will be on the joint press conference between Brexit Secretary David Davis and EU’s chief negotiator Michael Barnier. According to the media, the UK and EU have discussed bringing forward talks about the transition period that would follow Brexit, which could be received as a GBP positive if confirmed at the press conference today”.

“However, we see any GBP rally today as short-lived as risks remains skewed slightly to the upside ahead of the Conservative Party congress starting on 1 October. We still would consider buying EUR/GBP on dips below 0.8750 for a possible short-term rebound towards 0.89”.