GBP/USD dived under 1.12. Economists at ING expect the pair to move back below 1.10 sooner or later.

Cable looks unsustainable above 1.10

“We still deem the pound’s current levels as unsustainable given the fragility in the bond market and the UK’s deteriorated fiscal and current account position.”

“A return to sub-1.10 levels in cable is a question of when rather than if, in our view, and today’s US payrolls may favour a more rapid descent.”

“A potentially fast acceleration in the UK housing market correction has surely become a more relevant theme for the government, and likely another downside risk for the pound.”