EUR/GBP: BoE decision could turn to non-event – ING

FXStreet Insights Team FXStreet

The latest macro indicators have all but reinforced expectations that the Bank of England (BoE) will keep rates on hold on Thursday. In this context, the EUR/GBP pair is set to stay capped below 0.8300 in the coming weeks, ING’s FX analyst Francesco Pesole notes.

EUR/GBP to stay capped below 0.8300 in near term

“The focus will be on any tweaks to forward-looking language and the vote split (which we expect at 8-1 hold-cut). There is no press conference scheduled for this meeting. Our perception is that the BoE will try to make this announcement a non-event, offering cautious signals for further easing down the road but still highlighting stickiness in services inflation and wages.”

“We don’t see the pound being hugely impacted today, and the near-term outlook remains positive for the currency – at least until a fresh round of UK data potentially throws the latest hawkish repricing into question.”

“We see EUR/GBP staying capped below 0.8300 in the coming weeks.”

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