A small decline in wage growth is hitting the Pound. Economists at ING expect the EUR/GBP pair to extend its rally.

Start of longer-lasting rise in EUR/GBP

“After last month's unexpected surge in the level of UK average pay, the growth rate on a monthly basis slowed once again.”

“With the BoE having put a lot of weight on this release, as well as the next CPI print, the chances of a pause at the June meeting have slightly increased.”

“The price action in the Pound this morning is mirroring this: EUR/GBP has broken back above 0.8700 and we think there is still ample upside room as further BoE tightening is priced out of the Sonia curve.”