EUR: Broadly Consolidating Around 1.17; GBP: Likely To Recover Into 1.3250-1.3300 – ING

GBP/USD bounced from the lows and EUR/USD is stuck in range. What’s next? Here is the view from ING:

Here is their view, courtesy of eFXnews:

ING FX Strategy Strategy Research expects the EUR to broadly consolidating this week in the absence of a spike in EZ political risks.

“Politics will overshadow ECB policy for the EUR this week as the noise related to Catalan independence looks set to remain in place.

We expect EUR/USD to hover around the 1.1700 level – with modest downside risks stemming from either US data or politics. In the absence of a close below 1.17, we look for consolidation,” ING argues.

On GBP front, ING expects the pound to bounce back this week as initial Westminster chaos has been averted.

“This might help to ease some of the downward pressure on GBP as fears of imminent chaos in Westminster have been thwarted…We look for GBP to recover its losses this week, with GBP/$ moving up to 1.3250-1.3300 (EUR/GBP 0.8860-0.8880),” ING adds.