EUR/GBP to consolidate into tomorrow's UK CPI – ING

Economists at ING discuss GBP outlook. 

UK 2-10 year Gilt curve is now the most inverted since 2000

The UK 2-10 year Gilt curve is now the most inverted since 2000. We are probably reading too much into one day's price action, but it could be noticeable that Sterling did not follow Gilt yields higher yesterday.

Expect EUR/GBP to consolidate into tomorrow's big release of May UK CPI. And again we would see current levels in EUR/GBP as a good area to increase FX hedge ratios on GBP receivables.