Recent euro weakness has seen EUR/GBP drift lower again. Economists at ING expect the pair to tumble towards the 0.82 level.

EUR/GBP can probably continue to bounce around the 0.83-0.84 range

“We have a target over the coming months near 0.82 – though that may be the extent of the GBP rally this year. The challenge for GBP will be if and when year-end market expectations for the Bank of England's (BoEs) bank rate adjust closer to 1.00/1.25% (our house call) versus the 2%+ currently priced. That adjustment is probably a 2H22 story for sterling.”

“For today, look out for a speech from BoE chief economist Huw Pill. Given high inflation that will go higher he may not want to issue a rate protest today. Thus, EUR/GBP can probably continue to bounce around the 0.83-0.84 range.”