Sterling weakened more than its peers yesterday despite an above consensus UK CPI read. However, economists at ING still expect the EUR/GBP pair to slide below the 0.83 level.

EUR/GBP still looks headed below 0.83

“Despite a small rebound, we still see a move in EUR/GBP below 0.83 as likely in the near term given policy divergence and the euro’s greater exposure to fresh Russia-related downside risks.”

“PMIs will be in focus also in the UK today, and like in the rest of Europe, we should see indications that the war in Ukraine and high energy prices have worsened the economic outlook in the country.  BoE’s Catherine Mann is the only noteworthy central bank speaker in the calendar today.”