EUR/GBP: Gains may struggle to extend beyond the 0.8750 mark – ING

EUR/GBP jumps to the 18-month high. Nonetheless, economists at ING expect the pair to struggle around the 0.8750 region.

Bank of England could lend sterling some help next week

“Despite the seemingly unstoppable re-pricing higher in Fed rate expectations, the BoE’s pricing has stalled, now around 65 bps for the September meeting. We currently see a relatively high chance of a 75 bps move next week, which could lend sterling some help, despite a general environment that remains rather unwelcoming for pro-cyclical currencies, and domestic growth fears that are likely set to keep a lid on a large GBP recovery.”

“This morning’s EUR/GBP jump may struggle to extend beyond the 0.8750 mark.”