16 Jun 2014
EUR/GBP downside continues – Danske Bank
FXStreet (Edinburgh) - In the opinion of Allan von Mehren, Chief Analyst at Danske Bank, the cross could face deeper retracements in the next months.
Key Quotes
“Sterling also gained tailwinds Friday on some very hawkish comments from Bank of England Governor Mark Carney, indicating that the BoE might consider raising rates this year”.
“EUR/GBP dropped below the 0.80 level to the lowest level seen since November 2012, and in our updated FX forecasts we have moved forward some of the expected GBP strength”.
“We now target EUR/GBP at 0.78 in 3M (0.80), 0.77 in 6M (0.79) and 0.76 in 12M (0.77)”.
Key Quotes
“Sterling also gained tailwinds Friday on some very hawkish comments from Bank of England Governor Mark Carney, indicating that the BoE might consider raising rates this year”.
“EUR/GBP dropped below the 0.80 level to the lowest level seen since November 2012, and in our updated FX forecasts we have moved forward some of the expected GBP strength”.
“We now target EUR/GBP at 0.78 in 3M (0.80), 0.77 in 6M (0.79) and 0.76 in 12M (0.77)”.