EUR/GBP seen within 0.8750/0.8800 range – Danske Bank

Chief Analyst at Danske Bank Allan von Mehren expects the European cross to remain sidelined for the time being.

Key Quotes

“The GBP sold off slightly yesterday on the back of the disappointing UK construction PMI figures, which plunged to 47.0 in March from 51.4 in February, compared to a consensus expectation of a modest decline to 51.0”.

“Today, the UK Service PMI release will be directional for the GBP. However, we do not expect the release to change the market’s expectations of a BoE hike in May (where a 25bp rate hike still is priced with some 80% probability) and we still expect the 0.875-0.88 range in EUR/GBP to hold near term”.