Last week witnessed the Pound Sterling (GBP) standing among the top performers in the G10 space, alongside the New Zealand Dollar (NZD) and the Swedish Krona (SEK). Despite this recent strength, economists at ING caution that the upcoming days might present challenges for the GBP.
Key Points from ING’s Analysis:
GBP Performance Last Week: The Pound Sterling, NZD, and SEK were highlighted as top performers in the G10 space in the previous week, showcasing strength in the currency.
Potential Challenges for GBP: ING economists express concerns about the GBP’s outlook in the next few days. They identify downside risks for GBP/USD, citing the impact of PCE inflation data in the US, which could strengthen the Dollar. The analysis suggests the pair may test the 1.2530 level, referencing the 14-February low.
EUR/GBP Stability: ING’s analysis extends to EUR/GBP, anticipating potential stabilization around the 0.8550 mark. The analysts highlight that the currency pair’s performance will be influenced by a speech from Lagarde and Eurozone CPI data, both events scheduled in the coming days.
Upcoming Events: The outlook for EUR/GBP hinges on factors such as Lagarde’s speech and Eurozone CPI data, scheduled to be released on Friday. ING suggests that these events could contribute to a stabilizing effect on the currency pair around the 0.8550 level.
As uncertainties loom, market participants will closely monitor these developments, keeping a keen eye on the interplay between economic data and currency movements.
