Published: 2023-12-21T08:50:39.000Z
GBP/USD, EUR/GBP flows: Sentiment Remain GBP Negative
Director of Research , Macroeconomics and Strategy
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GBP bearish points to a test of 0.8700 and potentially 0.8766 in the coming weeks.
GBP has stabilised against the EUR, but the tone remains mild negative with Wednesday’a much weaker than expected UK CPI data having prompted the money market to price in close to six 25bps rate cuts in 2024. Traders feel that GBP can drift out versus EUR, though some also note Thursday comments by ECB De Guindos suggesting rate cuts can only come when inflation is heading “towards” 2%. 