Economists at ING analyze GBP outlook ahead of important jobs data next week.

Sterling steady into jobs data next Tuesday

EUR/GBP volatility remains near recent lows and spot trades well within a tight 0.8570-0.8640 range. 

Second or third-tier UK data has been quite mixed recently, but the main event on the data front will be next Tuesday's release of jobs and wages data. We see that as a negative event risk for Sterling, where wage growth could continue to slow and take some of the steam out of the 100 bps BoE tightening expectations still priced in by money markets. 

GBP/USD to trade well within a 1.2400-1.2500 range