GBP/USD to struggle to break 1.25 as BoE's Huw Pill speech could weigh on Sterling – ING

Sterling continues to perform well and is certainly taking advantage of a weaker Dollar. Today, a speech from BoE's Huw Pill could weaken the GBP, economists at ING report.

Look out for a speech from Huw Pill

“GBP/USD is now approaching strong resistance in the 1.2450/2500 area. These levels could be tested today should the US data come in on the soft side.”

“Should Huw Pill choose to play up the welcome signs of easing constraints in the UK labour market, expectations of future BoE tightening may dwindle and Sterling should weaken. For that reason, we are reluctant to call for an early GBP/USD break above 1.25 and equally we think EUR/GBP should stay supported ahead of 0.8750.”

“We continue to target 0.90 later this year for EUR/GBP.”