The “Brexit currency pair†has been wobbling and looking for a new direction. There may be a direction to watch in the next weeks:
Here is their view, courtesy of eFXdata:
Danske Research discusses EUR/GBP outlook and advises its corporate clients should take advantage of the recent decline in EUR/GBP and high implied volatility.
“The informal EU Summit continues today and we expect EUR/GBP to remain volatile and sensitive to Brexit news. We generally see risks skewed to the upside for EUR/GBP in coming weeks ahead of the annual conservative party congress, which starts on 30 September.
Hence, corporate clients should take advantage of the recent decline in EUR/GBP and high implied volatility when hedging GBP income. See Corporate Hedger – use GPB recovery and high volatility to hedge GBP income, 14 September,†Danske argues.
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