GBP: Hawkish BoE resonates – ING

EUR/GBP is looking more comfortable at the lower end of a 0.8600-0.8700 range, ING's FX analyst Chris Turner notes.

GBP/USD may stay bid this week

"Driving that is newfound and credible hawkishness from the Bank of England, which now has the market pricing just 50bp of further easing. This compares to the approximate 125bp easing priced for the Fed through 2026."

"Some sticky UK inflation for July looks unlikely to alter the market's view of the BoE over the coming days. This should keep GBP/USD bid this week, where a break of 1.3585/3600 could see 1.3680/3700 by the end of the week."

"One wild card this week is Fitch's UK sovereign rating review after the close this Friday. More on that later this week."