EUR/GBP has been volatile but GBP has seen support. In the opinion of economists at Danske Bank, the scope of sterling strength has likely come to an end – and they see risks skewed to GBP weakness.

A hit to global risk sentiment could hit GBP

“We are having a hard time seeing a much stronger GBP with fragile risk sentiment and the aggressive BoE pricing and possibly increasing Brexit risks in 2022. 

“We keep our 12M target for EUR/GBP unchanged at 0.84.”