Despite the dollar’s good momentum, GBP/USD has managed to stay above the 1.30 level. This is expected to provide a solid floor for the cable, in the view of economists at ING.

Sterling is showing resilience

“Cable has been holding above 1.30, which may prove to be a quite solid support for now.”

“After all, the market’s dovish repricing of BoE rate expectations has been relatively contained, and the OIS pricing continues to embed 5+ rate hikes by the end of this year. This is ultimately offering some support to the pound in the crosses, and EUR/GBP may soon break back below 0.83”.