GBP/USD could drop back to 1.2290 perhaps 1.2250 – ING

The latest comments by BoE Chief Economist Huw Pill could hold Sterling back, in the view of economists at ING.

EUR/GBP could trade back up to 0.8710/0.8720

BoE Chief Economist Huw Pill said that expectations for rate cuts from next summer looked reasonable. We think these comments are a mild Sterling negative and given the risk that Fed-speak puts equities on the back foot again, risk-sensitive Sterling could hand back some of its recent gains. 

For example, EUR/GBP could trade back up to 0.8710/0.8720 and GBP/USD could drop back to 1.2290 perhaps 1.2250.