GBP Faces Potential Decline Towards Key Support Level Against Euro – ING

EUR/GBP
  • ING analysts suggest that the GBP could experience a potential decline against the Euro.
  • The higher gilt rates in the UK are already impacting the economy, with mortgage market distress and lenders adjusting rates and mortgage offers.
  • Despite these concerns, the GBP is expected to find support leading up to the upcoming CPI and Bank of England (BoE) meeting.

According to economists at ING, the outlook for the GBP is being analyzed ahead of the upcoming Bank of England (BoE) meeting. The GBP has been supported by higher gilt rates, which are starting to tighten the economy. The mortgage market has already been impacted, with lenders increasing rates and some withdrawing mortgage offers due to tightening expectations.

However, it is still too early to fully factor in these implications, including their impact on the housing market, into the value of the Sterling. The GBP is expected to maintain its support leading up to next week’s release of the Consumer Price Index (CPI) data and the BoE meeting.

Following the European Central Bank’s (ECB) decision, it is anticipated that the EUR/GBP currency pair could potentially move closer to the key support level of 0.8500.

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