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Improving cyclical UK momentum poses risk to record long EUR/GBP – MUFG

August 24, 2020 by admin 0 Comments

A look at EUR/GBP

MUFG Research flags a scope for EUR/GBP correction to the downside over the coming weeks.

“The pound is deriving support from improving cyclical UK momentum. The UK is still benefitting from the lagged re-opening of the economy which trailed other major European economies.

While the euro-zone PMIs fell back sharply in August, the UK PMI
continued to improve. The composite PMI rose by a further 3.3 point to
60.3 in August. It poses a challenge to the record long EUR/GBP (implied) positions that have been built up this month,” MUFG notes.

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This article was originally published by Forexlive.com. Read the original article here.