EUR/GBP risks skewed to the upside on the ECB meeting – Danske Bank

Mikael Olai Milhøj, Senior Analyst at Danske Bank, points out that EUR/GBP dropped slightly on Donald Tusk’s comments and in their view, however, there were no surprises in the EU’s stance on Brexit, but it illustrates how the Brexit negotiations will continue to be source of volatility.

Key Quotes

“We still see EUR/GBP risks skewed to the upside on the ECB meeting today. 0.8982 is the key level to watch out for on the upside. A break above this level could open up for a test of 0.90. The strong rhetoric and the very different views on Brexit between the UK and EU are part of the game and fully expected at this stage. Mediumand long-term investors should look for opportunities to sell EUR/GBP on rallies.”