EUR/GBP has settled above 0.87. Kit Juckes, chief currency strategist at Société Générale, believes the pair could move towards the 0.90 level.
Sterling unlikely to enjoy much bigger relief bounce
“EUR/GBP has reversed the spike in volatility we saw in late Septemberbut it is still well above the post-Brexit average, with GBP/USD even more above average than EUR/GBP. Both volatility measures should fall further as the pound settles.”
“But with the economy surely already in recession and poised to suffer from possibly even tighter fiscal policythe pound is unlikely to enjoy a much larger relief bounce and, over time, EUR/GBP likely to meander slowly down to 0.90 or so.”
Source: Fx Street
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