Wage data is key for GBP – ING

Sterling will likely be ultra-sensitive to the wage data release, economists at ING report. 

EUR/GBP to rebound to above 0.8800 by the end of this month

“The Bank of England made quite clear that its next policy move in June will largely depend on two releases: wages and inflation data.”

“We expect some moderation in the wage growth figure after last month's jump, which may ultimately push the MPC in the direction of a hold at the June meeting.”

“Markets are pricing in 20 bps of tightening, and the downside risks are quite material for Sterling. We expect this to be mirrored in a higher EUR/GBP, which we expect to rebound to above 0.8800 by the end of this month.”