GBP: Still good short-term outlook – ING

Another indication that French politics is having a limited FX impact is EUR/GBP, which has faced only limited downside pressure since the start of the week, ING’s FX analyst Francesco Pesole notes.

A structural break above 1.35 is a matter of when

"That said, the balance of risks remains more tilted to the downside for the pair, with the hawkish repricing in Bank of England rate expectations still underpinning decent GBP short-term momentum."

"A test of 0.860 remains possible, even though our longer-term view is less optimistic on GBP given the possibility of a dovish rethink of BoE cuts later in the autumn. In GBP/USD, we still think a structural break above 1.35 is a matter of when rather than if."