GBP/USD set to break below July lows at 1.3570 – ING

GBP/USD is trading around 1.3650 and economists at ING expect the cable to break below the 1.3570 July lows in the next few days. 

No data drivers on the horizon

“The dollar rally has sent GBP/USD sharply lower and there is a meaningful risk we’ll see a break below the 1.3570 July lows in the week ahead.”

“The higher sensitivity of the pound to risk sentiment compared to the euro has also led to a spike in EUR/GBP, but the 0.8645 July highs do not see imminently at reach, as the pound appears to have over-discounted some below-consensus data releases and the euro is lacking an idiosyncratic bullish narrative at the moment.”

“After Monday’s PMIs, there will not be other market-moving releases in the UK until the growth/industrial production figures on 10 September.”

“The Jackson Hole symposium will likely be the key driver, and with the risks skewed towards another leg lower in risk and leg higher in the dollar, the pound may struggle to recover just yet.”