Sterling has actually taken rather a rear seats up until now this year. Economic experts at ING think that the EUR/GBP set might extend its relocation higher towards 0.89.
UK information will be crucial today
” 95 bps of tightening up is now priced in by August this year. It is unclear that today’s information will contribute to those softer expectations– salaries and inflation might stay high– however we do see those BoE tightening up expectations coming under pressure over coming months.
” EUR/GBP might continue to push up towards 0.89, which is our target for completion of this very first quarter.”
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