GBP/USD: weak data and lower yields are weighing on the GBP - Scotiabank
|In respect of GBP/USD, analysts at Scotiabank explained that weak data and lower yields are weighing on the GBP.
Key Quotes:
"RICS house price data revealed more damage to the sector following Brexit. The survey showed slowing buyer inquiries for a fourth consecutive month and the index of sales indicated the fastest decline in transactions since 2008."
"The BoE’s asset purchase plan is shrinking the GBP’s yield advantage over its major currency peers; the 10-year gilt spread over 10-year JGBs reached a record low today. Sterling is trading defensively below 1.30 versus the USD and remains soft on the crosses (EURGBP traded briefly above 0.86 earlier)."
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