EUR/GBP: A mildly hawkish ECB on Thursday warns of a break above 0.8600 later this week – ING

The UK has just released wage and employment data. Economists at ING analyze GBP outlook.

Wage data not as hawkish as it looks

The UK wage numbers are actually more dovish than they look at first glance. With unemployment notching higher, the labour market data doesn't scream a need to keep hiking rates much further.

We think it right not to chase EUR/GBP too much lower on this data (it is currently reversing from a brief dip to 0.8570) and what could prove a mildly hawkish ECB on Thursday warns of EUR/GBP breaking above 0.8600 later this week.