Having traded as high as 0.87 last week on the back of the softer UK CPI data, EUR/GBP is now back at 0.8570. Economists at ING analyze the pair’s outlook.
Sterling enjoys the travails of the Euro
This is entirely a Euro-driven move and does not represent some bullish re-appraisal of Sterling’s prospects.
We are mildly negative on the Euro on Thursday’s ECB meeting and with UK rates likely to be dragged higher by US rates later today, we would say that EUR/GBP may have a bit more downside in the 0.8520 area over the next few sessions. .
