Synopsis:

ING expects a rebound in the EUR/GBP pair ahead of Bank of England Governor Andrew Bailey’s speech at Jackson Hole on Friday. They maintain a short-term target of 0.86 for EUR/GBP, anticipating short-term spreads to move in favor of the euro in the coming weeks.

Key Points:

• EUR/GBP Rebound:

  • ING anticipates a rebound in EUR/GBP, particularly ahead of BoE Governor Bailey’s speech at Jackson Hole.

• Target Level:

  • They maintain a short-term target of 0.86 for EUR/GBP, suggesting potential upside for the euro against the pound.

• Short-Term Spreads:

  • ING expects short-term spreads to favor the euro, supporting the case for a rebound in the EUR/GBP pair over the coming weeks.

Conclusion:

ING is confident in a short-term rebound of EUR/GBP, targeting 0.86, as they see factors aligning in favor of the euro ahead of BoE Governor Bailey's speech at Jackson Hole and in the coming weeks.