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26 Feb 2015
UK growth recovery on track, EUR/GBP at 0.72 over 6-m view – Danske
FXStreet (Barcelona) - Sverre Holbek, Senior Analyst at Danske Bank, explains that the stronger UK growth recovery might aid EUR/GBP to move towards 0.72 in the long-term.
Key Quotes
“The GBP has performed strongly so far in February appreciating more than 3% against both the EUR and the USD.”
“Fundamentally, the recovery remains on track in the UK and we are still optimistic regarding the British economy. Today’s second release of Q4 GDP growth should confirm this view and show a solid growth of 0.5% q/q mainly driven by domestic demand and, in particular, private consumption.”
“We expect EUR/GBP to drop further on a three to six months’ horizon targeting the cross at 0.72 in 6M as a rate increase from the Bank of England is moving closer.”
Key Quotes
“The GBP has performed strongly so far in February appreciating more than 3% against both the EUR and the USD.”
“Fundamentally, the recovery remains on track in the UK and we are still optimistic regarding the British economy. Today’s second release of Q4 GDP growth should confirm this view and show a solid growth of 0.5% q/q mainly driven by domestic demand and, in particular, private consumption.”
“We expect EUR/GBP to drop further on a three to six months’ horizon targeting the cross at 0.72 in 6M as a rate increase from the Bank of England is moving closer.”