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Investing.com -- The British pound maintains a positive short-term outlook despite limited downside pressure on the EUR/GBP pair since the beginning of the week, according to ING.
The bank noted that the EUR/GBP exchange rate has shown only modest movement, which indicates that French political developments are having minimal impact on foreign exchange markets.
ING analysts believe the balance of risks for the EUR/GBP pair remains tilted to the downside, with the hawkish repricing in Bank of England rate expectations continuing to support sterling’s momentum in the near term.
The bank suggests a test of the 0.860 level for EUR/GBP remains possible, though their longer-term view on the pound is less optimistic.
ING cites the possibility of a dovish reassessment of Bank of England rate cuts later in the autumn as a factor that could affect the currency’s performance beyond the immediate future.
For the GBP/USD pair, ING maintains that a structural break above the 1.35 level is inevitable, describing it as "a matter of when rather than if."