Jens Pedersen, Senior Analyst at Danske Bank, sees the European cross under pressure via the ECB and BoE.
Key Quotes
“The trade-weighted EUR, which the ECB monitors, is now at its strongest level since January 2015. This will worry the ECB and should mitigate a continued EUR rally”.
“The Bank of England was dovish at Thursday’s monetary policy meeting and we have moved our expectations for the first rate hike to February 2017 from May 2016”.
“In line with this, EUR/GBP will be choppy and trend-less as relative interest rates will lose the influence on the cross and focus will be on news flows regarding Brexit”.
(Market News Provided by FXstreet)