Sterling has been one of the least badly hit G10 currencies, arguably because the UK runs a trade deficit with the US and goods exports to GDP are relatively small, ING’s FX analysts Chris Turner notes.

A bias towards 1.2100 for GBP/USD looks likely this week

“That is why EUR/GBP is under pressure today. However, we see Thursday's Bank of England rate meeting as a possible negative event risk for sterling. Given the broadly positive dollar environment, however, this looks more like a story for GBP/USD than EUR/GBP. A bias towards 1.2200 and possibly 1.2100 for GBP/USD looks likely this week, depending on the US trade story.”