EUR/GBP to stay in the 0.88-0.9060 range – Danske Bank

Mikael Olai Milhøj, senior analyst at Danske Bank, points out that the EUR/GBP is little changed as Theresa May won the vote of ‘no confidence’ in the House of Commons last night.

Key Quotes

“At this point, it remains uncertain how the Brexit process will continue from here. The Prime Minister will hold talks with all party leaders and present the government’s plan for Brexit on Monday.”

“All options for Brexit are still on the table, including a second referendum and a ‘no deal’ Brexit and we expect EUR/GBP to stay in the 0.88-0.9060 range until further clarification.”

“We maintain the view that an extension of Article 50 would be positive for GBP as it reduces the risk of a ‘no deal’ Brexit, while pressure on GBP might increase due to rising uncertainty as 29 March moves closer.”