EUR/GBP remains on the back foot for the fifth consecutive day. Economists at Société Générale expect the pair to finally have a crack at 0.8300 this week as the Bank of England (BoE) is set to raise rates by 25bp.

Sterling to rally on a BoE rate hike

“We don’t think the BoE will disappoint and this time will play a straight bat on Thursday. A 25p rate increase looks like done deal. Markets only discount 20bp so if the bank does hike, sterling should rally.”

“A hawkish hike – including ending the reinvestment of maturing Gilts – could set EUR/GBP on course for a decline below 0.8300. Support below the figure is situated at 0.8282/77 before 0.8218 (50% Fibo retracement of 0.9500-0.6936).”