EUR/GBP has edged just below the 0.86 level. Kit Juckes, Chief Global FX Strategist at Société Générale, analyzes Sterling’s outlook.

GBP/USD does not look stretched

One side-effect of the soft German data has been a slide in EUR/GBP since the end of December, to the lowest level since mid-December.

There’s been nothing to shout about from UK data recently, but GBP/USD doesn’t look stretched and if EUR/USD holds here, Sterling may make an early push for USD 1.30.