The Pound Sterling (GBP) was only lightly touched by a consensus Bank of England hold on Thursday, ING’s FX analyst Francesco Pesole notes
EUR/GBP to remain bullish in the coming months
“The lack of new guidance has been the norm in the latest BoE meetings, and the vote split tends to be one of the very few metrics of hawkish-dovish tendencies. Yesterday’s 6-3 vote split for a cut can be interpreted marginally on the dovish side and is allowing markets to reinforce their conviction call on an August cut.”
“We only expect two cuts this year two cuts this year, but markets may be tempted on the dovish side by soft UK data, and we remain generally bullish in EUR/GBP in our multi-month view.”
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