The Pound seems to be holding up surprisingly better than other G10 peers. However, economists at ING expect the EUR/GBP pair to bounce back higher toward 0.88.
Pound resilience in doubt
“We had previously deemed GBP resilience versus the Euro during the banking turmoil as markets seeing the UK banking sector as not as vulnerable as the Eurozone one.”
“Given GBP is generally more sensitive to risk sentiment than the euro, and the UK banking sector is coming under scrutiny this morning, we see risks of a EUR/GBP rebound back above 0.8800 today.”
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