Pound Trapped in Range as Markets Anticipate Dovish Repricing

Since early September, the British Pound (GBP) has been locked in a tight range against the Euro, between 0.855 and 0.860.

This stagnation follows the Bank of England's (BoE) recent meeting, which did not significantly challenge the market's aggressive expectations for tightening.

According to ING economists, there is still no indication that the BoE will increase interest rates, a view that supports a bearish outlook for the GBP.

As a result, ING forecasts a move to 0.870 in EUR/GBP as markets eventually reprice dovishly.