GBP/USD: Unlikely to test last week’s highs of 1.2580 again very soon – ING

GBP/USD hovers around the key 1.2500 level. Economists at ING expect the pair to remain stable. 

EUR/GBP downside risks this week

 “Today, the Fed may not have a sizeable impact on Cable in our view, and leave it close to the 1.2500 mark. We don’t see a high chance of last week’s highs (1.2580) being tested again very soon.”

“When it comes to EUR/GBP, we are seeing some rebound in the run-up to the ECB meeting. We suspect that the ECB announcement may fall short of the market’s hawkish pricing and therefore see some downside risks for the pair later this week (i.e. a return to 0.8750/0.8780 area).”