Concerning economic outlook and dovish repricing in rate expectations to keep GBP rather unattractive – ING

Despite the Dollar’s correction on Friday, the Pound still has to fully recover from the post-Bank of England blow. Economists at ING expect investors to continue refraining from placing bets on the GBP.

In an uneasy position

“The combination of a highly concerning economic outlook and a forced dovish repricing in rate expectations look set to keep the British Pound rather unattractive.”

“Cable may be primarily driven by dollar moves this week, but the EUR/GBP pair could extend gains to the 0.8850/70 area.”