As the Pound Sterling (GBP) continues to follow the downward trend of the USD, Scotiabank’s Chief FX Strategist Shaun Osborne provides valuable insights on the current market situation.
Key Developments
Recent events, such as PM Starmer’s efforts to strengthen UK/EU relations in Germany, have the potential to boost GBP. Additionally, BoE MPC member Mann, who previously advocated for a hold in the last MPC policy decision, is scheduled to speak soon. The consistent positive UK data reports in recent times may have eased concerns about wage trends.
GBP is currently consolidating, with minor support at 1.3235. However, there is a possibility of further downward movement in the short term. A bearish “harami” candle could form if the session closes low, with support for GBP at 1.3180.
Expert Analysis
Overall, the GBP is facing a period of consolidation amidst the broader USD trend. Investors should closely monitor key events and data releases to make informed decisions regarding their finances and investments.