EUR/GBP may continue to find support beyond the 0.8900 level – ING

EUR/GBP has stabilised after Wednesday’s big rally. Economists at ING believe that the pair could trade beyond the 0.8900 mark for now

Unstable risk sentiment should hit GBP harder than EUR

“Yesterday’s Decision Makers Panel survey signalled that firms now expect to raise prices and wages at a slower pace, which favours a more cautious monetary policy approach.”

“We still think the BoE will hike by 25 bps on 23 March, but the market’s pricing for an additional 50 bps of tightening after that seems too aggressive.”

“EUR/GBP may continue to find support beyond the 0.8900 level for now as the Euro may gain more momentum in the crosses and unstable risk sentiment should hit GBP harder.”