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GBP/USD: 1.2590/1.2620 SHOULD BE THE LOWER BOUNDARY OF THIS WEEK'S RANGE – ING

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The Sterling trade-weighted index is only marginally weaker since the Bank of England 'only' hiked by 25 bps last Thursday. Economists at ING analyze GBP outlook.


Upside bias in EUR/GBP into year-end

We look for one more hike to 5.50% in the Bank Rate (probably at the September meeting) before the BoE is prepared to go into a formal pause. This all points to a range-bound sterling over the next couple of months, but we retain an upside bias in EUR/GBP into year-end.


For Cable, we see 1.2590/1.2620 as important support and what should be the lower boundary of this week's range.

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