Political noise in the UK is certainly not impacting the pound. Economists at ING expect EUR/GBP to drift to the 0.8270/80 area neighborhood and GBP/USD to lurch higher towards 1.3670 or even 1.3750.

Onwards and upwards

“Unsurprisingly political risk has not damaged GBP, where the focus remains squarely on whether the BoE hikes 25bp on February 3rd. The market tried to dissect yesterday's testimony from Governor Bailey - especially on the issue of Quantitative Tightening - but the Short-Sterling interest rate strip barely budged.”

“We continue to favour EUR/GBP drifting to the 0.8270/80 area.”

“Cable could drift back to 1.3670 or even 1.3750 if we are over-estimating dollar strength.”