The Pound has had a good start to the week. Economists at ING analyze the GBP outlook.

Pound’s beta-to-risk sentiment to remain elevated for now

There will be very little on the domestic side for GBP until Friday when Gross Domestic Product (GDP) figures are released. 

Expect the Pound’s beta-to-risk sentiment to remain elevated for now: in the longer run, we still think markets are overestimating Bank of England tightening, will have to scale down expectations and EUR/GBP can climb back to 0.87-0.88.