GBP/USD could drift back to 1.2100 on the slightly softer Dollar – ING

GBP/USD trades in positive territory above 1.2050. The pair could regain the 1.21 handle today, analysts at ING report.

We will hear from BoE Governor Bailey today

“Look out for a speech by Bank of England Governor Andrew Bailey today. Money markets price the Bank Rate at 4.75% into September. Our team thinks that BoE rates will not need to be hiked that far, yet with inflation staying high for the time being, Governor Bailey may find it too early to disabuse the markets of that pricing.”

“GBP/USD could drift back to 1.2100 on the slightly softer Dollar today.”