With no local developments or data of note to drive markets, the GBP’s rebound today reflects the still soft undertone of the USD and a recovery from yesterday’s PPI-driven volatility, Scotiabank’s Chief FX Strategists Shaun Osborne and Eric Theoret report.
Sterling is firmer on the session
“The Pound Sterling (GBP) is lagging some of its G10 peers somewhat this morning but has had a solid week overall, rising against the USD and EUR, as markets rethink the outlook for UK monetary policy after last week’s BoE decision.”
“Sterling is firmer on the session but yesterday’s peak and minor reversal from the 1.3595 area warrants attention as the pound topped out at a similar point in late July. Cable has put together a solid run of gains since basing in early August but spot needs to push on through to a 1.36 handle to extend gains. Support is 1.3520.”