Sterling helped by the constructive risk environment at the start of 2023 – ING

Sterling has been performing slightly better. Without any doubt, the better risk environment is helping the GBP, economists at ING report.

Better risk environment provides some insulation

“The UK has quite a large country weight in global equity and debt benchmarks, meaning that flows into these products can provide some support.”

“Market pricing of a further 100 bps BoE hike to the 4.50% area this summer looks resolute.”

“0.8770-0.8870 may well contain EUR/GBP for the rest of this week, though GBP/USD could have some more upside should US data allow.”