GBP: Not that strong in the crosses – ING

GBP/USD broke the key 1.300 resistance yesterday on the back of USD weakness, ING's FX analyst Francesco Pesole notes.

EUR/GBP remains close to its January 2025 high of 0.846

"In the crosses, the GBP is not showing particular strength, and EUR/GBP remains close to its January 2025 high of 0.846."

"We don’t expect tomorrow’s Bank of England meeting to be a major event for sterling. As discussed here, we expect a consensus hold with only two members voting for a cut."

"The UK budget event later this month is the biggest risk event for the pound. GBP negative scenarios are predominant as Chancellor Rachel Reeves may either slash spending, raise taxes or risk unnerving the gilt market. We see upside risks to 0.85 in EUR/GBP near term."