Today and tomorrow, we will hear from Bank of England Governor Andrew Bailey. However, the Pound should rapidly default to being driven by external factors, economists at ING report.

GBP/USD is a USD story and EUR/GBP is a EUR story

“With virtually nothing to highlight on the data side, GBP may be moved by Bailey’s words but should rapidly default to being driven by external factors.”

“Essentially, GBP/USD is a USD story and EUR/GBP is a EUR story.”

“We still think Cable can reach 1.2500 this quarter, and that the EUR looks marginally more attractive than GBP, and EUR/GBP should move back to 0.8900.”