GBP: Hawkish BoE and French politics to weigh on EUR/GBP – ING

EUR/GBP looks to stay offered this week as French politics prompts some reassessment of long euro exposure, ING's FX analyst Chris Turner notes.

EUR/GBP might be pressing support at 0.8600 shortly

"This comes at a time when a credibly hawkish Bank of England is already providing sterling with some support. Following this month's hawkish turn by the BoE, the market struggles to price one 25bp cut this year (just 12bp currently priced) and barely two cuts by next summer."

"There doesn't look too much on the agenda to knock the BoE's hawkish agenda this week, which suggests EUR/GBP will be pressing support at 0.8600 shortly."