GBP: Sterling performs well – ING

It's interesting to see EUR/GBP still trading quite softly despite some better news on global trade, ING's FX analyst Chris Turner notes.

Sterling holds firm as EUR/GBP trades soft

"By nature of the UK's better trade position with the US and the fact that the UK has a trade deal, EUR/GBP normally should trade better bid on positive trade news. No doubt sterling's relatively high interest rates (4.30% per annum on a one-week deposit, versus 2.2% for the euro) are helping here. And there seems to be less fear over a tough UK government spending review on 11 June."

"EUR/GBP looks comfortable down here in the 0.8350-0.8400 area."