The Bank of England’s trade-weighted Sterling index continues to trade near the highs of the year. Economists at ING analyze GBP outlook.
Holding onto gains, short term
It may well be that this sterling strength will last until the next set of UK wages and CPI releases (September 12 and 20 respectively), where the euro should have more mileage than the dollar given the headwinds in the external investment environment.
EUR/GBP can stay offered in a 0.8500-0.8550 range, while GBP/USD remains trapped well inside last week’s narrow range of 1.2615-1.2785.
