GBP/USD can reach 1.2500 this quarter, EUR/GBP should move back to 0.8900 – ING

Today and tomorrow, we will hear from Bank of England Governor Andrew Bailey. However, the Pound should rapidly default to being driven by external factors, economists at ING report.

GBP/USD is a USD story and EUR/GBP is a EUR story

“With virtually nothing to highlight on the data side, GBP may be moved by Bailey’s words but should rapidly default to being driven by external factors.”

“Essentially, GBP/USD is a USD story and EUR/GBP is a EUR story.”

“We still think Cable can reach 1.2500 this quarter, and that the EUR looks marginally more attractive than GBP, and EUR/GBP should move back to 0.8900.”