British Pound: Uptrend sustainability questioned versus Euro – ING
ING’s Francesco Pesole notes the Pound has been resilient against the Dollar and EUR/GBP has fallen about 0.5% since Friday, partly on positioning ahead of the Bank of England meeting.
ING analyst Francesco Pesole questions the sustainability of the British pound's uptrend against the euro, as EUR/GBP has fallen about 0.5% since Friday. While the pound has held its ground against the dollar, he believes there are risks skewed in favor of a dovish Bank of England. The risks include potential market pricing being pushed back by BoE Governor Andrew Bailey and upcoming fiscal headlines ahead of the late October budget.
Pesole sees most risks as on the upside in the coming weeks, citing factors such as monetary policy developments, potential Scottish independence referendums, and growing pressure on Downing Street. He maintains a target of 0.87 for EUR/GBP. Meanwhile, AUD/USD struggles below 0.7150 in the Asian session, alongside weak Chinese economic data and US bond yields near multi-year highs, which are supporting the US dollar and putting pressure on the pair.
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