EUR/GBP can remain broadly supported into Wednesday’s CPI – ING

EUR/GBP has crept higher in the past few sessions, back to the 0.8600 gauge. Economists at ING analyze the pair’s outlook.

Softer into the CPI risk event

Volatility in global central bank tightening expectations after the US CPI slowdown seems to have asymmetrically hit those curves that had more room for dovish repricing, like the GBP one.

We are observing some positioning ahead of Wednesday’s key release of the UK inflation numbers. CPI data will make or break a 50 bps August rate hike by the BoE. 

We suspect EUR/GBP can remain broadly supported into Wednesday’s CPI.