EUR/GBP: Draghi and Carney more important than politics now - ING

"While the story of UK politicians voting on the EU Repeal Bill is likely to dominate the media narrative, we believe GBP markets have adequately factored in the prospects of 'bad' political headlines in the near-term," explains Viraj Patel, Foreign Exchange Strategist at ING.

Key quotes:

"The more prominent driver for EUR/GBP in early September may prove to be relative central bank currency talk. We believe that some caution by the ECB this week over an over-exuberant EUR - coupled with greater BoE concerns over GBP-induced inflation next week (see below) - could provide a de facto cap on EUR/GBP upside around the 0.92-0.93 area. We retain a neutral bias this week, noting that it would take a super dovish ECB or positive UK data surprises to see a break of the 0.9140/50 support and trigger a broader retrace towards 0.90."

"Should investors ignore any ECB verbal jawboning and push EUR/USD above 1.20, then we could easily see EUR/GBP - the market's preferred vehicle to play EUR strength - posting fresh highs above the 0.93 level. Under this alternative scenario, we would expect the 0.94150 resistance to remain in tact. Equally, we would still be inclined to view the move as a near-term EUR/GBP overshoot - rather than a trend towards parity."