EUR/GBP has lots of support in the 0.8500/0.8550 area – ING

EUR/GBP has stayed pretty offered. Economists at ING analyze the pair’s outlook.

Sterling may continue to hold gains against the Euro

Given that it is Purchasing Managers Index (PMI) week, Sterling may continue to hold gains against the Euro. This is because the UK's composite PMI is smartly above 50 (last reading 52.2) compared to the Eurozone's (48.0).

The EUR/GBP pair has lots of support in the 0.8500/0.8550 area and our base case assumes this is the bottom of the trading range this quarter.