Sterling has been a little weaker than analysts at ING thought. They still expect the GBP/USD pair to tumble towards the 1.15 level.

Soft equity environment is not helping

“Sterling typically shows higher correlations to equity markets than the euro (probably given the larger role of financial services in the UK economy). A tough environment for equities is, therefore, a real headwind to any sterling recovery.”

“0.8575/85 looks the obvious near-term target for EUR/GBP, while for GBP/USD it remains hard to fight a move to 1.15.”