EUR/GBP to 0.85, Cable to 1.33/35 – ING

Following the amount of turmoil in the Brexit  saga, analysts at INg Bank have offered their outlook for GBP/USD and EUR/GBP.

Key Quotes:

“We still think the scenario analysis we presented over the summer, shown below, is a good way to look at the near-term prospects for GBP, where progress on negotiations could see two central bank hikes priced in 2019 and EUR/GBP trade to 0.85.  

However, for cable, a stronger dollar probably means that progress on GBP/USD is only limited to the 1.33/35 area – rather than the 1.36-38 area, we had originally thought possible when we put this scenario matrix together.”