The pound is set to stabilize ahead of the Bank of England (BoE) meeting on Thursday. Economists at ING expect GBP to soften after the rate announcement, especially against the US dollar.

BoE may defy hawkish expectations on Thursday

“Expect a couple of days of ‘wait-and-see’ in the GBP crosses as investors hold their breath ahead of the Bank of England meeting on Thursday.”

“We think that would prompt a bit more dovish repricing across the GBP curve and the pound could moderately weaken after the rate announcement. Such weakness should prove more pronounced against the dollar, which could find some more support from the FOMC meeting, and EUR/GBP upside could still be capped to the 0.8450-0.8500 area for now.”