Societe Generale Bank: EUR/GBP is still on the downside;
1 Société Générale said on Tuesday (September 11) that the euro-pound technical pattern shows room for further decline as the short-selling of the pound will continue to weigh in the next few weeks.
2 The bank analysts said that the biggest factor affecting the currency pair is undoubtedly the Brexit negotiations. There are several key issues, such as tariff arrangements. At present, the probability of no agreement to leave the EU is low. Unless the British government leadership team changes.
3 However, the UK's GDP performance is not bad, which makes the Brexit prospects relatively optimistic, but also accelerates the short-covering of the pound, in addition, taking into account the changes in the spread prospects, the relative real rate of return. The trend helps the euro continue to fall against the pound.