ING forecasts a stable 0.84-0.85 range for EUR/GBP, supported by a hawkish Bank of England and persistent Eurozone economic headwinds.
The British Pound is supported by a hawkish stance from the Bank of England, which is signaling readiness for one or two interest rate hikes. ING analysts view the current budget risk as manageable, providing a stable foundation for the currency despite concerns that market expectations for 2027 may be overly aggressive.
The outlook is supportive due to the likelihood of near-term interest rate hikes by the Bank of England.
The EUR/GBP pair is expected to remain constrained within a 0.84–0.85 range as Euro-specific risks weigh on the common currency. This outlook is reinforced by the divergence between the Bank of England's readiness to hike rates and the persistent weakness surrounding the Eurozone economy.
ING expects the pair to trade between 0.84 and 0.85 for several months.
ING analysts maintain a bullish outlook for the British Pound, citing manageable budget risks and a hawkish Bank of England. The firm projects the EUR/GBP pair will consolidate within a 0.84 to 0.85 range over the coming months as Eurozone economic risks weigh on the single currency.
ING cites a supportive backdrop for Sterling, driven by the Bank of England's readiness to hike rates and the perception that UK budget risks are currently manageable.
ING analysts expect the EUR/GBP pair to trade within a 0.84 to 0.85 range for the next several months.