September 25, 2024 12:03 GMT
EURGBP: SocGen Recommend Positioning for EUR/GBP Upside via Options
EURGBP
- SocGen recommend buying a 2m 0.8500/50 EUR/GBP call spread and 2m one-touch option, with a knock-in at 0.8650 to benefit from a spot bounce, citing the rates market over-priced for ECB rate cuts in a soft-landing and the BoE's struggle to remain restrictive.
- As such, they expect the EUR/GBP rates differential to rebound imminently, lifting EUR/GBP with it.
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