EUR/GBP can turn big again above 0.8900 – ING

Sterling has been performing a little better over the last 24 hours. But in the view of economists at ING, EUR/GBP can turn big again above 0.8900.

Vulnerable to financial sector stress

“If the banking stress story has a little further to run we can expect a little Sterling under-performance, given the relatively large size of financial services in the UK economy.”

“EUR/GBP can turn big again above 0.8900, while GBP/CHF should make a run at 1.10.”

See: UK GDP grows 0.3% MoM in January vs. 0.1% expected