Economists at ING expect the GBP/USD pair to advance nicely toward the 1.33 mark by the end of the year.

Sterling’s correlation with risk assets declines

“GBP/USD should be heading higher this year. 1.33 is our target for year-end.”

“Interestingly, Sterling’s correlation with risk assets has fallen a lot this year – a factor probably helping Sterling at the moment. Yet we see a less hawkish BoE coming through, limiting GBP gains.”

Source: Refinitiv, Macrobond, ING

See: Hardly any appreciation potential for Sterling – Commerzbank