GBP/USD, EUR/USD: BNP remains bearish on both pairs in short term

The BNP remains bearish on both the GBP/USD and EUR/USD:

"Risky assets are returning in favour, which is stabilising the GBP/USD and EUR/USD. However, we remain of the view that these two pairs will reverse in the short-term, returning to 1.30 and 1.09, respectively.

The euro has not declined as much as the GBP, but we expect that investors will continue to build bearish positions on the euro.

What works against our bearish bias on the euro is the surplus in the current account, but if we consider the short term, we think the risk is to the downside on the EUR/USD with 1.09 as a target. 1.30 for the GBP /USD," says the BNP bank.