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Sterling may get support versus euro if BoE turns more hawkish

ING says EUR/GBP support sits at 0.8455 to 0.8465, with 0.8400 at risk if a November rate hike looks likely.

Reported · Written up by our desk · Major Pairs

ING’s Chris Turner at ING told FXStreet that EUR/GBP has been pressured by France related euro risk, but Sterling could find support if the Bank of England takes a more hawkish path.

According to ING, markets will look for signals from BoE centrist policymakers Andrew Bailey and Claire Lombardelli about whether the bank aligns with other central banks and hikes rates.

ING sees strong support at 0.8455 to 0.8465 on EUR/GBP, and said those levels could be tested toward 0.8400 if a November hike becomes more likely and external risks spill over.

FXStreet noted that the potential move comes as France’s budgetary position remains unresolved, which continues to weigh on the euro risk premium.

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