EUR/GBP traded above 0.87 for the first time since March. Economists at ING analyze Sterling’s outlook.
GBP/USD: Little support can be expected before the 1.2000/2075 area
With one-month implied yields at 5.20%, Sterling is an expensive sell.
We think EUR/GBP may continue to trade in the 0.86-0.87 range for the time being rather than continue to march higher.
GBP/USD is a different story where the ongoing strength of the Dollar and the softening risk environment warn that little support can be expected before the 1.2000/2075 area.
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