Risks in EUR/GBP point to the upside – Danske Bank

The European cross should meet initial resistance around 0.8920, while the BoE could deliver a hawkish message on Thursday, noted Valtteri Ahti, Chief Strategist at Danske Bank.

Key Quotes

“EUR/GBP continues to grind higher and given that a Brexit deal will most likely not be reached before December at the earliest, we still see risks mainly skewed on the upside near term”.

“Technically, resistance is seen at 0.8920 (1 October high). We do not expect the BoE to find it necessary to send a more hawkish signal to the markets at the MPC meeting on Thursday although it remains a possibility given wages are growing at the fastest pace in this cycle (3.1% y/y)”.