GBP is showing strength – Scotiabank
|The Pound Sterling (GBP) is up 0.3% against the US Dollar (USD) and outperforming most of the G10 currencies into Monday’s NA session, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
Markets fade expectations for BoE easing
"Yield spreads are steady and holding on to last week’s gains, offering the pound support as market participants look to Thursday’s PMI’s and Friday’s retail sales. Markets are fading their expectations for easing with less than 50bpts priced by year end. A 25bpt cut is expected for August, but markets appear to be debating the extent of additional easing required for 2025."
"The RSI is recovering and close to the neutral threshold at 50. We note the importance of recent support at 1.34 and see the near-term balance of risk favoring upside. The near-term range is expected to be bound between support at 1.3400 and resistance above 1.3550."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.