EUR/GBP: Brexit will weaken the pound again – Danske Bank

Sterling will struggle from stalling EU-UK trade talks into summer and strategists at Danske Bank see EUR/GBP at 0.90 in 6M.  

Key quotes

“We expect GBP to weaken, driven by further Brexit tensions, especially ahead of the decisions on a possible extension of the transition period, financial services and fishing before 1 July 2021.” 

“We see EUR/GBP at 0.90 in 1M, 0.90 in 3M and 6M (unchanged) followed by a move towards 0.86 on a trade deal in 12M (unchanged).”