GBP/USD could trade up to 1.2650/2750– ING

GBP/USD is trading closer to 1.26. Economists at ING believe that the pair could inch higher to 1.2650/2750.

EUR/GBP to remain steady near 0.800

“It seems that the view that European banks, including the UK, are better regulated than those in the US is providing some insulation to European currencies. This is also helping to keep expectations alive (expectations with which we disagree) that the Bank of England can hike rates two to three more times this year. Our latest views are that the BoE may not push back against these expectations next week – which would see Sterling hang onto recent gains.”

“Expect EUR/GBP to remain steady (slight upside bias) near 0.8800, while GBP/USD could trade up to 1.2650/2750 – should EUR/USD manage to break through 1.1100 with momentum.”