Tuesday’s jobs data should weigh – ING

EUR/GBP is back below 0.88 again as GBP/USD seems to find good demand under 1.31, ING’s FX analyst Chris Turner notes.

EUR/GBP to meet good demand at 0.8750/60

“We still think the prospects of a December 25bp cut from the Bank of England are underpriced. The market now attaches just a 60% probability to such an outcome.”

“Feeding into the BoE story will be tomorrow’s release of the September wage data. This is expected to slow further and give the BoE greater confidence that inflation is less persistent than first thought.”

“Expect EUR/GBP to meet good demand at 0.8750/60 should it make it that low. We prefer levels above 0.88 now.”