EUR/GBP set to continue around the 0.87 area – ING

EUR/GBP is still slightly above the 0.87 mark. Economists at ING analyze Sterling’s outlook.

A break above 1.2275 in GBP/USD warns there may be a corrective window to the 1.2450 area

Attention will be paid to the flash October PMI releases today, where any dip in the services index could help wipe out the final 10 bps of tightening still priced into the Bank of England policy cycle.

We prefer EUR/GBP continuing to trade around the 0.8700 area, while a break above 1.2275 in GBP/USD warns there may be a corrective window to the 1.2450 area.