• EUR/GBP is in consolidation mode after hitting deeply oversold levels

• Spot continues to hover around 0.8333, or 1.2000 in GBP/EUR

• The cross failed to extend lower after the hawkish BoE hike, given weakness in global equities

• That said, EUR/GBP's sensitivity to equities has diminished in recent months

• The 60-day rolling beta between EUR/GBP and SPX is effectively flat

• This suggests domestic factors (French risks) are a bigger driver for the cross than external ones

• If that continues, given the risks to EUR, rebounds in the cross could be somewhat limited

• Overall, more sideways action looks the path of least resistance for EUR/GBP
EURGBP vs SPX beta

Justin McQueen is a Reuters market analyst. (The views expressed are his own). ((Email: ))