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GBP/USD remains biased back to the recent lows near 1.2050 – ING

Economists at ING analyze GBP outlook.

EUR/GBP could retest 0.8700/8710 

Sterling is rather a sideshow at the moment given that investors are largely preoccupied with events in the Middle East and whether the Fed is embarking on a somewhat less hawkish narrative. 

The difficult international environment should mean that GBP/USD remains biased back to the recent lows near 1.2050. 

Any upside surprise to UK price data this week looks more like it will be played out in EUR/GBP – where a retest of 0.8700/8710 could be seen.

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Euro bounces off lows near 1.0500 amidst improved risk appetite

The Euro (EUR) starts the new trading week on a positive foot against the US Dollar (USD), encouraging EUR/USD to extend the rebound from the 1.0500 n
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