EUR/GBP seen at 0.8650 in 3-montn – Danske Bank

The European cross is seen grinding lower towards the 0.8650 area in the near term horizon, suggested Morten Helt, Senior Analyst at Danske Bank.

Key Quotes

“EUR/GBP traded lower yesterday, in a move that mainly seems to be driven by the EUR/USD sell-off”.

“The UK jobs report came out as expected yesterday with average hourly earnings ex bonuses increasing to 2.9% y/y from 2.8%. In our view, this supports the case for a BoE rate hike in August. We target EUR/GBP at 0.8650 in 3M”.