📝EUR/GBP Set For A Leg Higher: Danske Bank

Since our last update, the pressure on GBP has mounted as the UK

economy has showed more pronounced signs of weakness and geopolitical pressures have mounted. We increasingly see domestic factors and the relative growth outlook between the UK and the euro area as becoming GBP negatives. Additionally, we think a global investment environment characterized by elevated uncertainty, widening credit spreads and a positive correlation to a USD negative environment, in our view, favours a weaker GBP. We forecast EUR/GBP to move higher towards 0.87 on a 6–12-month horizon. - Danske Bank