EUR/GBP to target 0.85 in 12-months - Danske Bank

Danske Bank’s analysts maintain a bullish outlook for the British Pound and forecasts the EUR/GBP cross to depreciate to 0.85 in 12-months. 

Key quotes:

“GBP once again kept its stand against the EUR appreciation yesterday while GBP/USD continued higher to a new post-Brexit high. The Brexit risk premium has generally declined over the past weeks driven by renewed negotiation optimism and a general appetite for GBP among investors. While we remain bullish GBP over the medium term (we target EUR/GBP at 0.85 in 12M), we see risks mainly skewed to the upside for EUR/GBP in the short term. Today’s UK CPI data could support EUR/GBP temporarily but we still look for 0.8650-0.90 to hold near term.”