EUR/GBP seemed to come lower yesterday on stress in the Europan banking sector. Hoever, a 50 bps rate hike by the ECB could lift the pair above 0.88, economists at ING report.

GBP/USD to bounce around in a 1.20-1.22 range

“Once again, the performance of the European banking sector will probably determine the EUR/GBP performance over the near term – although should the ECB be able to credibly hike 50 bps today without unnerving banking stocks, EUR/GBP can push back above 0.8800.”

“Expect GBP/USD to bounce around in a 1.20-1.22 range until this banking sector crisis calms down.”