GBP: Dovish BoE surprises markets – ING

ING's Chris Turner discusses the Bank of England's recent dovish stance, which was unexpected and has shifted market expectations towards potential rate cuts. Turner suggests that political pressures could delay the easing cycle, and expects EUR/GBP to find support at 0.8670/80, with a bias towards 0.88 in the coming month.

Market adjusts to dovish BoE

"We see plenty of room for sterling to take the strain here and would look for EUR/GBP to now find support at 0.8670/80."

"Our bias over the next month is towards 0.88 as political pressure remains on Starmer and data slowly adds to the case for a March BoE rate cut."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)