Expect month-end EURGBP demand for a while yet despite Brexit

30 June 2016, 08:17
Sherif Hasan

Despite the Brexit result it's still business as usual as far as UK payments to the EU are concerned 30 June

The German Bundesbank buys euros each month-end, in excess of €2bln, to cover the UK's EU membership fee.

We highlight this EURGBP demand every month and in the wake of the Brexit result we can still expect to see it in play today. Indeed we may already have done so with traders front-running the expected demand.

EURGBP has climbed to 0.8294 from yesterday's lows of 0.8206 as GBPUSD failed above 1.3500.

Expect offers into 0.8300. As I explained again in my ACT course webinar the demand doesn't always mean the pair has to rally but it will always help to temper any prevailing supply.

Currently 0.8289 and looking underpinned at 0.8260 with cable still on the back foot at 1.3378

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