EUR/GBP to fall below 0.8300 as political storm seems innocuous to the sterling – ING

Monday’s EUR/GBP strength is not related to political turmoil in the UK, in the view of economists at ING. They still expect the pair to slide below the 0.8300 as the Bank of England is seen hiking rates on Thursday.

Political storm remains a non-factor

“Political risk has been (and should continue to be) a non-factor for the currency market.” 

“The rebound in EUR/GBP should have short legs, as the prospect of BoE hiking on Thursday should keep the appetite for the pound quite elevated.”

“We keep targeting a move below 0.8300 in the near-term.”