EUR/GBP could extend its drop to 0.8800 – ING

EUR/GBP is trading around the mid-0.8800s. Economists at ING believe that the pair could extend its slide toward 0.8800 but continue to see Euro outperformance in the second quarter of the year.

Running out of reasons to stay bearish on EUR/GBP for longer

“The EUR/GBP drop could extend to 0.8800 but we think markets are running out of reasons to stay bearish on the pair for longer.”

“We continue to see Euro outperformance from the second quarter and 0.9000 is our target level in EUR/GBP in the second half of 2023.”