GBP: Focus on UK politics – Danske Bank

Jens Peter Sørensen, senior analyst at Danske Bank, explains that for GBP focus today will be on the UK Prime Minister Theresa May’s presentation of her plan B for Brexit after the Brexit deal was rejected in parliament last week.

Key Quotes

“Appetite for GBP has improved and EUR/GBP dipped below the lower bound of the 0.88-0.9060 on Friday. As such, we expect EUR/GBP to remain stuck in the current range until further Brexit clarification.”

“Any indication that Article 50 will be extended or other measures that ensure that a ‘no deal’ Brexit can be ruled out would be positive for GBP and lead to a shift lower in the range for EUR/GBP.”