GBP: Quiet appreciation – ING

GBP/USD remains quietly well bid as it rides on the coat-tails of a stronger euro, ING's FX analyst Chris Turner notes.

Cable to trade withing the 1.3500-1.3600 range

"As a major reserve currency, Pound Sterling (GBP) in theory should benefit from any de-dollarization flows. And with one-week deposit rates at 4.25%, sterling is also seen as an attractive dollar alternative during quiet market conditions, like now."

"On the calendar this week for sterling is jobs data tomorrow and the UK government's spending review on Wednesday. Neither should be a game changer for sterling."

"Expect Cable to trade a 1.3500-1.3600 range, although there will be some downside risks at some point if we're right with our call for two 25bp Bank of England rate cuts this year. The market currently prices just 36bp of rate cuts this year."