The softer Dollar environment is giving Cable another lift. Economists at ING expect the GBP/USD to test the 1.22/23 zone.

BoE and the ECB should be hiking by 50 bps in December

“This rally could extend to the 1.22/23 area unless either today’s US core PCE data or tomorrow’s US jobs data can put a floor back under US yields.”

“EUR/GBP continues to hold support near 0.86 and that may well be the case into year-end. Both the Bank of England (BoE) and the European Central Bank (ECB) should be hiking by 50 bps in December. But we are taking the view that risk assets will come under more pressure over coming months – which will lead to renewed – if mild – Sterling underperformance.”