EUR/GBP is set to trade around the 0.88 mark, in the view of analysts at Danske Bank.

EUR/GBP stuck between opposing forces

“In the very short-term, changes to systemic risk fears will remain the key driver of the cross.”

“Further out, EUR/GBP is, in our view, stuck between opposing forces. On the one hand, we expect relative rates to act as a clear tailwind, while global growth slowdown and the relative appeal of UK assets act as a headwind. At present, we do not see the relative growth outlook or global investment environment to create a significant divergence between EUR and GBP. 

“We expect the cross to remain range bound around 0.87-0.88.”