EUR/GBP to challenge the 0.810/05 area over coming sessions – ING

GBP has been outperforming in Europe. As the UK has room to deliver fiscal support measures, the pound is set to remain bid against the euro, driving the EUR/GBP pair to the 0.8310/05 zone in the next few days.

Hoping for some fiscal support

“In focus over coming sessions is the UK Chancellor's spring statement (tomorrow). That the UK's fiscal position has some room to support the economy may provide a little more room for the Bank of England to hike. Money markets have re-priced the BoE's Bank rate back to 2.20% for the 22 December meeting.” 

“The resilience of BoE tightening expectations should keep GBP bid versus the euro over coming months.”

“0.8305/10 looks the bias for EUR/GBP over coming sessions.”