EUR/GBP looks on track to retest the 0.8505 July lows – ING

Economists at ING expect the EUR/GBP pair to extend its decline and challenge the 0.8505 July lows.

EUR/GBP ready to test the lows

While a 25 bps September hike should be a done deal, we still think a November move is an open question, given indications of abating price pressures in other parts of the economy. 

Still, the Pound is now enjoying a post-repricing strength that looks unlikely to abate rapidly, given the lack of market-moving data and BoE speakers. 

EUR/GBP looks on track to retest the 0.8505 July lows, also given the lack of strong idiosyncratic defence for the Euro.