GBP seen fragile ahead of BoE – Danske Bank

Chief Strategist at Danske Bank Valtteri Ahti assessed the views for the Sterling in the next sessions.

Key Quotes

“For GBP, the key event this week is the Bank of England (BoE) meeting on Thursday. On Friday, we changed our call and no longer expect the BoE to increase the Bank Rate this time. Instead, we think a rate hike will be postponed to the next big meeting in August”.

“Consequently, we also lifted our 1M and 3M EUR/GBP forecast to 0.88 in 1M (previously 0.8650) and 0.8650 in 3M (previously 0.86). We expect GBP to trade a bit soft going into the BoE meeting and expect EUR/GBP could temporarily break above 0.8850 and potentially 0.89 before the meeting or on the announcement. We keep our 6M and 12M forecasts unchanged at 0.84 and 0.83, respectively”.