Andrew Bailey, governor of the Bank of England, will speak to us today and tomorrow. Yet, according to ING experts, the Pound should quickly start to be influenced by external factors.
While EUR/GBP is a EUR story, GBP/USD is a USD story.
Bailey’s statements may influence GBP, but there isn’t much to point out on the data side, so it should quickly return to being influenced by outside factors.
In essence, EUR/GBP is a EUR story, while GBP/USD is a USD tale.
We continue to believe that Cable can reach 1.2500 this quarter and that the EUR seems slightly more appealing than GBP, with the EUR/GBP pair likely to return to 0.8900.