GBP remains heavy – Danske Bank

Senior Analyst at Danske Bank Morten Helt sees the Sterling keeping the bearish stance for the time being.

Key Quotes

“In the majors, GBP weakened again yesterday against EUR and USD without any news or significant data releases. As such, price actions underscore the current underlying negative momentum for GBP, and we expect GBP to continue to trade with a moderate negative bias in coming months ahead of the Tory party conference and key Brexit talks in October”.

“Technically, GBP/USD trades around the 100-day moving average. A clean break below this line could open up for a test of the 12 July low at 1.2812 and thus induce more GBP weakness near term”.

“Overall, we still expect EUR/GBP to trade within the 0.90-0.92 range in the coming months targeting 0.91 in 1-3M. We see risks mainly skewed to the upside for EUR/GBP in the short and medium term”.