EUR/GBP: More downside room – ING

EUR/GBP continues to press the 0.8700 support. Economists at ING see the pair staying pressured

Capped upside for Cable

The tax cuts announced by the Treasury are, on paper, a Sterling-positive. They are both pro-growth and pro-inflation and do not seem to have excessively unnerved the bond market.

We expect GBP to keep its decent momentum, especially in EUR/GBP, which we expect to make a decisive break below 0.8700 in the coming days. 

We are still expecting some USD resilience and see a capped upside for Cable.