EUR/GBP: Guided by the outcome of the EU Summit – Danske Bank

Analysts at Danske Bank suggest that the EUR/GBP has stabilised above the 0.90 level and the future direction will be impacted by the outcome of the EU Summit tomorrow, where the EU leaders will discuss Brexit.

Key Quotes

“Focus for the cross remains on (1) whether the UK Prime Minister can get sufficient concessions from the EU in order to change the Commons’ stance on the deal and (2) timing of a potential vote in the House of Commons. The latter seems most likely in January and we expect EUR/GBP to remain volatile and range bound for longer. Meanwhile, speculation of a ‘no confidence’ vote on the PM is brewing and could send EUR/GBP higher if triggered.”