Sterling has taken rather a back seat so far this year. Economists at ING believe that the EUR/GBP pair could extend its move higher toward 0.89.

UK data will be key this week

“95 bps of tightening is now priced in by August this year. It is not clear that this week's data will add to those softer expectations – wages and inflation could remain high – but we do see those BoE tightening expectations coming under pressure over coming months.

“EUR/GBP could continue to nudge up towards 0.89, which is our target for the end of this first quarter.”