EUR/GBP to trade within the range of 0.8780-0.8925 in the short term – Danske Bank

EUR/GBP increased slightly on the back of the weaker-than-expected UK GDP data released yesterday, notes Chief Analyst, Jakob Christensen at Danske Bank.

Key Quotes

“In particular, the domestic drivers (private consumption and business investments) disappointed, but the weak GDP print does not change our call that the BoE hikes in May, which is still priced in with an 80% probability in the UK money market. We expect EUR/GBP to trade within the range of 0.8780-0.8925 in the short term, with Brexit as key risk factor ahead of the EU summit on 22-23 March.”