- EUR/GBP: Corporates will now use any dip below 0.8600 to increase hedges on Sterling receivables – ING
Market news
21 July 2023
EUR/GBP: Corporates will now use any dip below 0.8600 to increase hedges on Sterling receivables – ING
Sterling is rallying on the back of strong UK Retail Sales data for June. Economists at ING analyze GBP outlook.
Strong June retail sales provide a brief lift
Unseasonably warm weather for the UK last month was seen to be behind the Retail Sales bounce. The data will also feed into the Bank of England's narrative that the consumer can handle higher interest rates.
The release has triggered a 20 pip drop in EUR/GBP. However, we think EUR/GBP probably put in an important low near 0.8500 earlier this month and that corporates will now use any EUR/GBP dip below 0.8600 to increase hedges on Sterling receivables.
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