Economists at ING discuss GBP outlook for the day ahead. Risks are title to the downside, which could lift EUR/GBP to the 0.8930 mark.

Decision Maker Panel survey is key today

“We have a down arrow on GBP today, because of the release of the BoE's Decision Maker Panel survey. This has pointed to an easing in tight labour conditions including marginally weaker wage growth and less difficulty in recruitment. Assuming those trends continue, GBP interest rates can continue to fall behind those of the Eurozone and the US and see some modest Sterling downside.” 

“EUR/GBP could make a run at the 0.8930 area.”

“Also today we have BoE speakers in the form of Silvana Tenreyro (super dove, not market moving) and Chief Economist, Huw Pill. He should follow Andrew Bailey's line and again probably presents a slightly negative event risk to Sterling.”