GBP rises but lags G10 peers – Scotiabank
|The Pound Sterling (GBP) is up 0.3% vs. the US Dollar (USD) and relative underperformer among the G10 currencies, lagging all but the AUD and JPY, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
BoE cut expectations fade further
"Tuesday’s labor market data were mixed, offering wage growth figures that were largely in line with expectations while also showing a stronger than expected rise in total employment and a deeper than expected contraction in monthly change of payrolled employees. The release is important, kicking off a heavy data week that includes CPI on Wednesday, public finance figures on Thursday, and retail sales and preliminary PMI’s on Friday."
"Short-term rates markets are showing signs of a material rise in rate expectations, fading the extent of cuts expected in 2026. Markets are now pricing roughly 40bpts of BoE easing, down from 50bpts over the past week or so. As with EUR, sentiment appears to be dominating as we note the GBP’s high correlation to risk reversals."
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.