FXStreet (Edinburgh) - Chief Analyst at Danske Bank Allan von Mehren sees the sterling vulnerable against the backdrop of rising speculations on Brexit. Key Quotes “News over the weekend suggests that the British Prime Minister David Cameron is moving closer to securing a renegotiated EU deal for Britain ahead of the EU summit on 18-19 February”. “Donald Tusk, European Council president, indicated that he would circulate a draft British deal to EU capitals on Tuesday”. “British negotiations with the EU are likely to go down to the wires ahead of the EU summit”. “GBP-crosses are currently consolidating after the substantial underperformance over the past months”. “We expect EUR/GBP to remain choppy and trendless near term where ‘Brexit’ risks continue to weigh on GBP. However, we expect a gradual downtrend in EUR/GBP to emerge over coming months as Cameron is likely to secure a deal that should raise the prospects of the UK voting to stay in the EU”. For more information, read our latest forex news.