EUR/GBP set to drop towards the 0.8300/0.8280 area – ING

After a brief spike to 0.8380 yesterday, EUR/GBP is again dropping back to the low 0.83s. Economists at ING still expect the pair to move to the 0.8300/0.8280 region.

Watch out for Bank of England speakers 

“We favour the direction of travel towards 0.83, where at least GBP is being buoyed by a more materials-weighted local equity benchmark and the UK government's more aggressive re-opening schedule.”

“Today, we will see BoE heavy-hitters Andrew Bailey and Ben Broadbent testify to a parliamentary committee. We doubt they will want to push back (yet) on aggressive pricing of the BoE cycle, which is providing support to GBP and helping to insulate against higher energy prices.”

“We continue to favour a move to the 0.8280/8300 area for EUR/GBP.”