Retaining strength in today’s environment – ​​ING

Sterling’s recent strength has been partly based on the ‘no news is good news’ narrative, as quiet calendars have allowed markets to look elsewhere to ease bets, while happily keeping the Bank of England in the relative outlier group unpleasant, FX strategist at ING Francesco Pesole notes.

EUR/GBP to face more downside risk

“We remain somewhat concerned that sterling will soon face a correction as UK numbers begin to point to greater urgency for easing, although this week may be too early for that.”

“Second quarter GDP was revised slightly lower to 0.5% quarter-on-quarter this morning, but there is no major UK release until October 15 jobs figures, with only a partial exception of the survey Bank of England Decision Maker Panel. .”

“Given this, along with the risk of Eurozone inflation cementing ECB easing bets, EUR/GBP is likely to face more downside risk in the coming days and could test the 0.8300 support. “