GBP quiet despite continued support from fundamentals – Scotiabank
|The Pound Sterling (GBP) is entering Tuesday’s NA session with a modest 0.1% gain, lagging its European currency peers while slightly outperforming growth-sensitive commodity peers CAD and AUD, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
UK-US spreads push higher
"The domestic calendar is heavy but releases are concentrated toward the end of the week, starting with CPI on Wednesday, and followed by public finance figures and preliminary PMI’s on Thursday. Domestic rate expectations are offering the pound critical support as markets fade their pricing of cuts. The 2Y UK-US spread is extending its push higher and recovering to levels last seen in early April."
"The multi-month trend remains bullish, confirmed by the early August pullback that reinforced support in the mid1.31s. Momentum is in bullish territory but only modestly so. The latest pullback has seen near-term support offered by the 50 day MA (1.3502). We look to a near-term range bound between 1.3480 support and 1.3580 resistance."
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.