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EUR/GBP could move closer to the 0.8500 key support after ECB decision – ING

Economists at ING analyze GBP outlook ahead of the Bank of England (BoE) meeting next week.

Staying supported into the BoE meeting

It’s important to note how the higher gilt rates are by themselves starting to have their tightening effect on the economy. Mortgage market distress is the most direct example, with major lenders hiking rates and some pulling mortgage offers following the recent repricing of tightening expectations.

It is, still, too early to factor that – or any implications for the housing market – into Sterling, which will probably continue to find support into next week’s CPI and BoE meeting.

EUR/GBP could move closer to the 0.8500 key support after today’s ECB decision.

 

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