EUR/GBP: Unlikely to trade consistently above 0.85 – ING

The EUR/GBP is set to test the 0.85 resistance by the end of the week. However, economists at ING do not expect the pair to stay above that level.

Likely gradual return to the 0.83-0.84 region into the summer

“EUR/GBP is now trading at the highest since December 2021, and may well test the 0.85 resistance by the end of the week. We doubt, however, there is enough fundamental justification for EUR/GBP to trade consistently above 0.85, as the BoE-ECB policy divergence remains wide, and the Ukraine war looks likely to have hit the eurozone harder than the UK.” 

“A gradual return to the 0.83-0.84 region looks more likely into the summer.”