EUR/GBP to keep retreating on the back of encouraging news on the UK policy side – ING

EUR/GBP drops to near 0.86. Economists at ING expect the pair to remain under downward pressure.

Truss announces massive plan to fix energy bills

“The new UK Prime Minister Liz Truss has drafted a GBP130 bn plan to fix energy bills. The news appears to partially ease the market’s concerns (that have weighed on GBP) that Truss’ promised tax cuts would ultimately worsen the inflation picture.”

“EUR/GBP is testing the 0.8600 support and may keep retreating on the back of encouraging news on the policy side.”