Today's UK employment data saw EUR/GBP drop 15 pips – a move that makes sense, in the view of economists at ING.

The longer the BoE stays in hawkish mode, the more support Sterling can get

“We describe today's release of November jobs figures as ‘another month of relative resilience in the UK jobs market’. Wage growth was a little higher than expected and supports the latest findings from the Bank Of England's Decision Maker Panel survey.”

“EUR/GBP is trading close to 0.89 because of December's hawkish ECB shift. The longer the BoE stays in hawkish mode, the more support Sterling can get.” 

“Expect EUR/GBP to trade on the soft side of an 0.8850-0.8900 range today, with tomorrow's UK CPI release proving the next major input.”