EUR/GBP seen higher later this year as the hot UK inflation story cools – ING

EUR/GBP continues to trade offered. Economists at ING analyze the pair’s outlook.

A hawkish ECB provides some pushback to the BoE pricing

At least a hawkish European Central Bank (ECB) provides some pushback to the Bank of England (BoE) pricing and we continue to forecast a higher EUR/GBP later this year – once the hot UK inflation story cools.

The EUR/GBP pair may find support here at the 0.8500/8550 area.

See: EUR/GBP target lowered to 0.8450 and GBP/USD target raised to 1.2800 – Credit Suisse