Further volatility expected in GBP – Danske Bank

Senior Analyst at Danske Bank Mikael Milhoj noted volatility should remain high around the Sterling in the next weeks.

Key Quotes

“GBP has started the week on a weak note following a solid performance so far this month. Last night, EUR/GBP bounced back above 0.8750 after testing 0.8700 last week”.

“As such, the sell-off in GBP appears to be more of a technical nature initiated by GBP/USD breaking below 1.2950. Brexit remains the key driver for GBP and the UK PM still struggles to secure support for the deal internally within the UK conservative party. Hence, expect GBP to remain very volatile in coming months”.