EUR/GBP could hit 0.90 next year – ING

Economists at ING continue to have a gentle upside bias for EUR/GBP.

The wild card is European politics

Expect EUR/GBP to bump up a little higher this year as the last vestiges of the BoE tightening cycle are priced out. And our call for 100 bps of BoE easing in 24 (not priced now) could see 0.90.

The wild card here is European politics. Elections this year mean that a lack of cohesion could see the Stability and Growth Pact automatically reintroduced next year and EZ peripheral debt hit.