EUR/GBP: Break below 0.89 unlikely to trigger a longer downtrend – ING

EUR/GBP is hovering around the 0.89 support. However, economists at ING doubt that the pair is to sustain more losses. 

Don’t read too much into a weaker EUR/GBP

“EUR/GBP is pressing through the 0.8900 support, but we doubt this is the start of a longer downtrend in the pair.”

“The Bank of England’s pushback against dovish rate speculation is happening in tandem with the ECB and we don’t see a key catalyst for the two currencies to dramatically diverge in the current environment.”