ING FX Strategy Research notes that Eurozone 3Q17 GDP beat expectations yesterday and has provided some support to the EUR on the crosses.
"EUR/USD is still battling with a strong USD, however, and unless it can break back above 1.1670/80 area this week, the downside risks remain," ING adds.
On the GBP front, ING notes with a BoE rate hike on Thursday all but priced in , what matters is the type of tightening cycle the Bank signals.
"Markets have got a bit of cold feet in recent weeks, so the follow through of a 25bp rate hike should be mildly GBP supportive. But what could really drive GBP higher is if the Bank signals that this is more than just a 'one-and-done' move and instead the start of a gradual tightening cycle…We’re still positive GBP," ING adds.
Source: ING Global Markets ResearchOriginal Article
