EUR/GBP seen within 0.8750-0.8900 – Danske Bank

The European cross is expected to remain within the 0.8750-0.8900 range for the time being, suggested Kristoffer Lomholt, Senior Analyst at Danske Bank.

Key Quotes

“GBP underperformed yesterday versus USD and EUR on weaker-than-expected UK PMI manufacturing data and as the ongoing conservative party congress is weighing on investor appetite for GBP”.

“Bank of England rate hike expectations remain intact with an 80% rate hike probability still priced into the UK money market and EUR/GBP is still likely test the high end of 0.875-0.89 range near term”.