• EUR/GBP: GBP riding the gas wave - ING

Market news

8 October 2021

EUR/GBP: GBP riding the gas wave - ING

eFXdata reports that ING Research discusses EUR/GBP outlook.

"EUR/GBP remains on the lows at 0.8500, largely on the view that the BoE will be more responsive to inflation than the ECB. Currently the market prices about 5bp of tightening at the November BoE meeting and 25bp by the February meeting next year. We think that is too aggressive, but the BoE has yet to disavow the market of these expectations. Perhaps the BoE is welcoming the benefits of a stronger GBP in insulating against higher energy prices?," ING notes.

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