In the view of economists at ING, the bar to trigger further hawkish repricing in the Bank of England (BoE) rate expectation curve is quite elevated, Subsequently, the British pound is set to face some pressure from the short-term rate differential side.

A consolidation around 0.8450-0.85 in EUR/GBP seems plausible

“In the longer run, as we expect the BoE to underdeliver compared to rate expectations, the pound is still looking likely to face some pressure from the short-term rate differential side.”

“For now, swings in risk sentiment should continue to drive most day-to-day moves. A consolidation around 0.8450-0.8500 in EUR/GBP seems plausible.”