EUR/GBP continues to trade offered. Economists at ING analyze the pair’s outlook.

A hawkish ECB provides some pushback to the BoE pricing

At least a hawkish European Central Bank (ECB) provides some pushback to the Bank of England (BoE) pricing and we continue to forecast a higher EUR/GBP later this year – once the hot UK inflation story cools.

The EUR/GBP pair may find support here at the 0.8500/8550 area.