Economists at MUFG Bank expect the Bank of England (BoE) to disappoint markets. Consequently, they see little room for dips below 0.83 in the EUR/GBP pair.

Two further 25bp rate hikes by the BoE and then a pause

“We are not convinced the BoE will be in a position to deliver what is priced into the market with growth likely to be very weak through the remainder of this year.”

“We assume two further 25bp rate hikes by the BoE and then a pause. It’s one reason why we see limited downside for EUR/GBP from current levels just below 0.8300.”

See – EUR/GBP: Any dips to the 0.8250 area could be the low point of the year – ING