MARKET VIEW - If ECB Cuts Rates by 50 Basis Points, EURGBP Could Dip to 0.8200

Forex - ING stated that the pound reached its highest level against the euro in two and a half years due to the market's continued expectation of very modest interest rate cuts by the Bank of England (BoE). ING analyst Chris Turner argued that the pound is also supported by the reality that the UK may "not be at the forefront and center" in the upcoming trade war under the administration of elected US President Donald Trump. Turner mentioned that if the ECB cuts interest rates by an additional 50 basis points in December, the EUR/GBP could decline to the 0.8200 level before the end of the year.