EUR/GBP: A 0.8600-0.8700 range may be the story for the majority of October – ING

Economists at ING analyze EUR/GBP outlook.

Bank of England survey to help cement expectations for a November pause

EUR/GBP is settling into a 0.8600-0.8700 range and that may be the story for the majority of October. 

There are only a few inputs ahead of the next BoE meeting on November 2nd, where we look for unchanged rates at 5.25%. One such input is Thursday's release of the BoE Decision Maker Panel survey, which we think will show a further easing in price pressures. This could prove mildly Sterling negative in that the market is still pricing 18 bps of further BoE tightening over the coming months.