EUR/GBP continues to rise. ING economists analyze the pair’s prospects.
GBP/USD could continue to fall
On Wednesday, the market moved to pricing in the Bank of England’s first full 25 basis point cut in June next year, with 78 basis points of easing by the end of the year. Following the change in guidance at the Bank of England’s last meeting – maintaining restrictive rates for an extended period – the market will now be attentive to changes in this language.
However, the Bank of England’s easing is already planned for next year, so it is not certain that EUR/GBP will have to rise to 0.8800 yet.
GBP/USD is eating into this week’s recovery and could fall further unless something like today’s US unemployment numbers disappoint.
Source: Fx Street
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