Kristoffer Kjær Lomholt, senior analyst at Danske Bank, points out that the EUR/GBP cross has traded in the 0.85-0.87 range for some time now and they expect it will continue to do so until we get some clarification over the coming days.

“Our base case with a long extension would probably be slightly GBP-positive and we could see EUR/GBP trade in the 0.84-0.86 range. In the event of a no deal Brexit, we still expect EUR/GBP to move towards parity. We continue to expect EUR/GBP to move down to 0.83 if the Withdrawal Agreement passes.”