EUR/GBP has been depreciating quite steadily as tensions in Ukraine have flared up. Economists at ING expect the pair to slide below the 0.8300 level today.

A historic break lower in EUR/GBP?

“Markets are likely estimating a greater fallout from a collapse in diplomatic relationships with Russia for the eurozone than for the UK. Accordingly, we would not be surprised to see EUR/GBP test the 0.8300 support as early as today: a break below this key level would bring the pair back to a range last seen in the aftermath of the June 2016 Brexit vote.”

“We think that GBP/USD remains quite exposed to the downside due to geopolitical tensions, and we expect a pull-back to 1.3500-1.3550 in the coming days unless we see a clear de-escalation.”