GBP: 0.88 for EUR/GBP might be a stretch – ING

EUR/GBP looks to be trading quite comfortably above April's spike high near 0.8735, ING's FX analyst Chris Turner notes.

GBP/USD looks more vulnerable

"A move up to 0.88 is not guaranteed, however, since this week's eurozone data could weigh a little on the euro. At the same time, sitting long EUR/GBP in quiet August markets is again carry negative and a very light UK calendar this week looks unlikely to provide the incentives to add to short sterling positions. Perhaps EUR/GBP can trade something like a 0.8700-0.8770 range this week."

"GBP/USD looks more vulnerable. Here, we favour a retest of decent support at 1.3370, below which losses can accelerate – perhaps all the way to 1.3150 if the US data/FOMC event risk this week is dollar positive enough."