EUR/GBP has further to go, to stabilize in the 0.85/0.90 range -  Danske

According to analysts from Danske Bank, the result of the referendum in the United Kingdom will push EUR/GBP  much higher in the short and medium term.

Key Quotes:

“EUR/GBP much higher on Brexit, GBP to remain weak”

“0-1M: In the very short term, we expect GBP volatility to remain high. GBP likely to bounce back somewhat when the dust settles. We expect EUR/GBP to stabilize in the 0.85-0.90 range.”

“3-12M: Medium and long-term outlook is very uncertain. Flows, growth and relative monetary policy point towards a weaker GBP. Fundamental valuation models suggest that EUR/GBP at 0.90 for an extended period of time should not be ruled out.”