EUR/GBP has now broken below 0.8700, the lowest level since December. Economists at ING expect the pair to turn back higher.

EUR/GBP weakness not very sustainable

“A good part of Sterling’s outperformance over the Euro relies on the market’s hawkish expectations on the BoE, with 70 bps of tightening still priced in this year.”

“In our view, there are good chances this week will mark the last rate hike of this cycle, and the Pound will struggle to hold on to its strength against the Euro as its rate advantage gradually erodes.”