EUR/GBP likely to remain implicitly heavy towards 0.8485, says OCBC Treasury Research

The EUR/GBP currency pair is expected to remain implicitly heavy towards 0.8485, following inherent risks surrounding the euro.

GBP-USD to floated above 1.2400 on the back of a vulnerable broad USD but expect some domestic focus on the UK CPI numbers (and its attendant implications on the BOE’s posture) today. Short term implied valuations are relatively static at this juncture although at a stretch, cable may be deemed slightly rich on the upside.

Likely range bound near term with the 55-day MA (1.2430) an immediate cap ahead of 1.2450 while 1.2360 may support. Elsewhere, inherent risk surround the EUR may keep the EUR-GBP implicitly heavy towards 0.8485.