GBP/USD advances towards 1.2500. ING economists analyze the outlook for the British pound.
EUR/GBP may correct back to 0.8700 this week
The UK Chancellor is looking for ways to reduce taxes. The focus this week is on the Autumn Statement, where we think Jeremy Hunt could have around £16bn to play with, given the better than expected fiscal trajectory. However, our UK economist doesn’t think this will move the needle for the Bank of England rate story, where we think rates have peaked and the BoE will begin easing next August.
Speculation on tax costs in a positive risk environment should be good news for the British pound.
GBP/USD may rise to 1.2590, while EUR/GBP may correct back to 0.8700 this week.
Source: Fx Street
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