Typically at month-end there is demand for EUR/GBP as the UK makes a periodic payment to the EU. Today is rebate day as the UK gets back a percentage of the funds it pays into EU farm subsidies.
As Peter mentioned, there is rumored to be about GBP 3.5 bln to be bought at the 15:00 GMT fixing. Combined with Posen’s comments that he could be persuaded to vote against a QE rise, the pound is on the ascent.
Cable trades at 1.5890 amd EUR/GBP at 0.8580.