13 Feb 2014
Flash: EUR/GBP could see further downside ahead - Danske Bank
FXStreet (Barcelona) - Kasper Kirkegaard, Chief Analyst at Danske Bank notes that yesterday EUR/GBP took a dive after the Bank of England was less dovish than expected.
Key Quotes
“Given that we expect the ECB to ease monetary policy further in the spring, we continue to see downside for EUR/GBP the next couple of quarters. EUR/USD will trade on the retail sales. Another weak number will support EUR/USD, given that it will reinforce speculation that the Fed will be forced to slow the tapering process.”
“However, note the comments from ECB's Coeure yesterday that a negative deposit rate is seriously considered by the ECB. The latter is exactly the reason why we expect EUR to come under pressure in the spring.”
Key Quotes
“Given that we expect the ECB to ease monetary policy further in the spring, we continue to see downside for EUR/GBP the next couple of quarters. EUR/USD will trade on the retail sales. Another weak number will support EUR/USD, given that it will reinforce speculation that the Fed will be forced to slow the tapering process.”
“However, note the comments from ECB's Coeure yesterday that a negative deposit rate is seriously considered by the ECB. The latter is exactly the reason why we expect EUR to come under pressure in the spring.”