GBP: Softer UK growth figures – ING

GBP/USD traded above 1.310 as European currencies moderately benefitted from Harris being the perceived winner of the debate, but is struggling to hold on to gains this morning after some softer-than-expected monthly UK GDP figures, ING’s FX strategist Francesco Pesole notes.

ECB meeting can favour a near-term EUR/GBP leg higher

“July’s growth came in at 0.0% MoM versus an expected 0.2%, and industrial production remained weak at -1.2% versus a -0.1% consensus. This probably throws some cold water on the recent notion of UK “exceptionalism”, especially when compared to the eurozone, but equally is no game changer for the Bank of England at this stage.”

“We are seeing EUR/GBP having bottomed out for now and finding some tentative support. We think tomorrow’s ECB meeting can favour a near-term leg higher, and a chance to move back to 0.850 by the end of September.”