GBP edges slightly lower – Scotiabank

FXStreet Insights Team FXStreet

Pound Sterling (GBP) is soft, down a modest 0.2% vs. the USD and a mid-performer among the G10 currencies.

Markets price in more BoE easing risk

"UK PM Starmer’s response to trade tensions appears to be centered around domestic measures targeting regulation reforms and tax breaks for sectors impacted by the US tariffs. Rate expectations have also shifted, with markets moving to price a full 25bpt for the BoE’s May 8 meeting, adding about 5bpts over the past week or so. The loss of rate support adds to near-term downside risk for GBP."

"GBP/USD’s sharp reversal of last week’s rally delivered a break of its one-month range and a push to fresh local lows in the mid/lower-1.28s. The RSI has drifted below 50, in bearish territory, and there doesn’t appear to be any clear support ahead of the lower 1.27s."

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FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

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