EUR/GBP can drift to the 0.8550 area unless Eurozone CPI surprises on the upside – ING

Sterling continues to perform well. Economists at ING discuss the EUR/GBP outlook ahead of Eurozone Harmonised Index of Consumer Prices (HICP) data.

GBP looks like a decent intra-European target currency for the carry trade

“Sterling now looks like a decent intra-European target currency for the carry trade.”

“Unless Eurozone CPI today surprises on the upside to drag Eurozone swap rates higher, EUR/GBP looks as though it can drift to the 0.8550 area.”

See – Eurozone HICP Preview: Forecasts from four major banks, sharp drop in inflation