EURGBP: The recent 0.86-0.89 range will continue to define the path in the near-term – Barclays

Economists at Barclays Research expect the EURGBP to continue moving within a 0.86-0.89 range as the Bank of England misses to offer support to the Pound.

British economy set to shrink 0.5% in Q3 2022

“GBP received little support from the BoE last week which yet again pushed against what they see as excessive market pricing. Accordingly, the recent 0.86-0.89 range will likely continue to define the sterling path versus the EUR in the near-term.” 

"We expect Q3 GDP to print at -0.5% QoQ, echoing the Bank’s forecast. This week, however, we expect GBP to be more driven by the broad Dollar, with focus on US CPI. While near-term China reopening signals will bring a pause in the broad Dollar, the gloomy outlook and the monetary divergence still caps sterling from a long-term perspective.”.