British Pound: Firmer ground with BoE hike risk – ING

Francesco Pesole at ING highlights a supportive backdrop for the Pound, with EUR/GBP now expected to trade in a 0.84–0.85 range for several months as Euro-specific risks persist and the Bank of England signals readiness to hike. While ING sees BoE expectations as too hawkish for 2027, one or two hikes look increasingly likely, and the budget risk is seen as manageable for Sterling.