EUR/GBP undervalued, targets 0.8700 this summer
The British Pound remains resilient despite shifting expectations around the next UK Chancellor.
The Pound has held on to its gains after Energy Secretary Ed Miliband emerged as a frontrunner for the role.
A short-term fair value model indicates EUR/GBP is modestly undervalued, with upside risks due to potential political risk and overly hawkish Bank of England pricing.