Advertising
Advertising
twitter
youtube
facebook
instagram
linkedin
Advertising

GBP Gains in Cable, EUR/GBP Remains Sideways

GBP Gains in Cable, EUR/GBP Remains Sideways
Aa
Share
facebook
twitter
linkedin

Table of contents

  1. GBP: Cable up, EUR/GBP sideways

    GBP: Cable up, EUR/GBP sideways

    We are seeing a lot of correlation in short-dated yields around the world, where yesterday's soft US CPI data saw 22bp taken out of the Bank of England tightening cycle for early next year. The main takeaway from yesterday's Bank of England financial stability and subsequent communication appeared to be that consumers and businesses could withstand higher interest rates - were they to materialise. In addition, today's release of May UK GDP data has emerged marginally better than expected. 

    In some ways, sterling has already enjoyed its re-rating on the very hawkish BoE and thus may not outperform in this current dollar bear phase. However, many investors will now be targeting a move to 1.3300 in GBP/USD - assuming we can close the week above 1.30.

     EUR/GBP has reversed off a low near 0.8500 - which now may mark the lower end of the trading range for this quarter


    ING Economics

    ING Economics

    INGs global economists and strategists tell you whats happening and is likely to happen in the world of global markets.

    Our analysis and forecasts will help you respond and stay a step ahead in the world of macroeconomics, central banks, FX, commodities and everything else in between. Visit ING.com.

    Follow ING Economics on social media:

    Twitter | LinkedIn


    Advertising
    Advertising